How to include the Assignment Fee

Question

Hi all! I'm new to the wholesaling business and after two weeks, I got my first property under contract. When I advertise this deal to potential cash buyers/investors, is the assignment fee traditionally included within the asking price? Or is that something that is discussed separately with the buyer?

Thank you.

Chad Gray · Answer

Same as what others have said I roll the assignment fee into the asking price. Also make sure somewhere in the Purchase Agreement that you're using it stipulates that you're allowed to assign the Contract. For example the Purchase Agreement I use, after I put my name as the Buyer, it says "and/or assigns", which contractually allows me to assign our agreement. Good Luck wholesaling!

Landon Kelly · Answer

Will do! My plan is to build integrity and transparency from the jump. Thank you for the clarification.

Landon Kelly · Answer

Got it! For clarification, are you saying to be transparent with the seller/realtor that I would be wholesaling the deal?

Landon Kelly · Answer

I hear you! Thank you a lot. I'll be sure to do it this way. :))

Melissa McRay Johnson · Answer

I've seen it done both ways. I typically roll it into the asking price. The only thing I would caution you on is the way you're marketing the property. Make sure you're being clear that you're assigning your equitable interest in the property. Also I would advise being transparent about the fact you're wholesaling the deal. Good luck!

Jerry Puckett · Answer

Yes, include in the asking price. "Mr Buyer, I need to get xx dollars for this deal". Log the fee on an assignment form of your choosing, then pass that to the title company where you brought the executed contract. Make sure your buyers name and contact info are complete and correct.

Most title companies wouldn't care if the assignment was written on toilet paper as long as everything is spelled correctly :-)