I need your help. So, I have a home under contract, and I picked it up from the seller incredibly discounted. I wish to turn this proper or rather assign this property to an investor for 60,000. Do I have to disclose to the seller what my assignment fee is? Do I have to even be present at the closing? And lastly, Do I need to pull the title? If so how do/should I go about this.
These are newbie questions I'm sure but I'm just beginning. I do know the buyer should know my assignment fee.
You can do it two ways:
Assign your contract and you will have to have your buyer sign the assignment contract which will state what your fee will be. If you are concerned and dont want them to know what your fee is then you need to do a double close. You will sacrifice a little of your profit for closing cost/misc cost but your end buyer will not know what you made for profit.
Most closing attorneys will require you to have transactional funding in order to do a double close If you dont have this then assignment will be your best bet.
You dont have to be at the closing. Anyone pulling title would be the buyer, not you unless you did a double close.
@Joseph Riv yes you should pull title or there would be no value in a assignment. (ie I give you money and cant close then) If you assign the other party will know what your fee is, because you give them your contract (assign it to them) and take your fee. They will go to closing for you. You need title because you dont know you have a deal until you know it can be closed. Let me know if you need any help.
Awesome this is what I had thought was reading something earlier today that confused me so ultimately the seller wont know the selling price/my fee? And thank you for the response!
Edit: How do I pull a title? and does it typically cost?
@Curt Davis so if I have a contract without title you would pay me an assignment fee?? To many bad deals for me to do that, so title work no assignment fee until its done.
Haha I edited just for you lol I suck at playing catch up though
How do I pull my sellers title and does it cost?
If you were assigning a home to me as the buyer I would have my closing attorney pull title and do a search as in most cases I would not be using your closing attorney and though your might have pulled it, mine will also pull it for me so for me it doesnt matter if you did or not. I do see where it would benefit on the front end. I am mainly stating that the end buyer regardless will pull title.
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