How does the assignment work at closing?

3 Replies

Hey Everyone,

I am signing a contract for a wholesale deal this friday and am wondering how the assignment works. I have an assignment contract, but am wondering if the sellers will ever see my profit margin. At closing do they see the assignment paperwork? Is that a separate meeting than the closing? Is it simply between my attorney and the buyer's attorney? These are the little things that are never explained. Thanks so much, -k-

@Kim Handelman

You will sign a normal purchase and sale agreement with the actual seller of the home.  A lot of people when they put their name as buyer they will for example write is as                   (  buyer, and or assigns ).  Once you have the signed contract you will then use an assignment contract to sell to your end buyer.  Your end buyer will see your profit and yes, there is always a possibility they might not like how much you are making. 

Your seller will never see how much you are making.  

You can always do a double close but you actually have to have the funds to close or get transactional funding and if you can do it this way your buyer and seller will not know how much you are making though you do sacrifice some profit.

Let me know if this clarifies things for you. 

Good luck