What should I do?
I found a house that I may put in an offer for. The owners are asking for what they owe, which is about $130k and the house is valued at $350k. They also want to close ASAP as they are in pre-foreclosure. What I want to know is, after I tie up the property, should I assign it for a 10% assignment fee, or should I do a double closing and try to pull as much money out of it as possible? I mean...we're talking about $220k in equity, which at 10% is still $22k to me TAX FREE, or should I say "I'll sell if for $250k and it's worth $350k," and then I walk away with $120k which is NOT tax free? I REALLY dont want to have to pay taxes on it because I hate giving away money to a government that's never going to give me my SS money...
I think I should just assign it because whoever I assign it to may look at it as I am a good wholesaler for finding such a good deal, and being "honest" and just taking a finders fee and not trying to rip them off by taking most of the equity....Then that way, for future deals, they will be willing to buy from me, and possibly give me a couple of friends who can go on my buyers list.
I dont know for sure....
OPINIONS?
By the way...this would be my first deal so...go easy on the critisizm...