Updated over 10 years ago on . Most recent reply
Assigning a deal with over 20k assignment
me and my partner are about the lack of a deal where we could potentially make more than $20,000. I brought up that we could get transactional funding and double close on it to the end by or do they not see how much were making on the Deal. He wants to assign it but you don't want to show to end by her how much you lock the property down for and that he's paying you a $20,000 assignment. He brings up the fact that if it's a good deal it's a good deal and they shouldn't care how much were making or how far down we got the home locked in at. But I'm thinking about future deals that we sell to this buyer he's going to wonder how much were making. I don't see the problem with the double close as usually closing costs were it would be under $2000.
What are your thoughts?
Most Popular Reply
Assign it.
Why are you trying to hide everything? Did you not tell the owner you are planning to make profit? Do you want to deal with Buyers who beat you up on your fee?
Recent Example from the end of March 2015.
Purchase Price 20k, Seller Owed 45k, We sold it for 35k (15k Assignment)
All in full disclosure and Seller coming to the table with 25k to close. Buyer knows what we made, Seller knows what we made and everyone left happy. We closed in our office and right on our whiteboard was the address and 35k sale price.
Seller hit up every online house buyer and had 5-6 offers on the property. Ours was the highest. (Complete Disaster of a house).
On another deal in January, I had a buyer question my fee. $4500 on a $18500 Total Purchase Price. He thought it was too high. A quick conversation with him and that was no longer an issue. Marketing costs A LOT of money.
Anyways. IMHO Assign. Assign. Assign, and then next time Assign. At least 99% of the time :)
Taking ownership and resale only if you can INCREASE the spread, not if you are just trying to HIDE the spread. (Ex Wholetailing or Buy and Flip)
Good Luck!