On a wholesale transaction, what gets recorded as the sale price?

2 Replies

I'm new to real estate investing and I'm starting out with wholesaling. I understand the whole contract assignment or double-close process, but I'm not clear on what price actually gets recorded as the sale price. 

For example, if I put a property under contract with the homeowner for $40K and then I assign the contract to another investor for $50K, what gets recorded in the public records as the sale price, $40K or $50K?

The reason I'm asking is so I'll know what price I'm seeing when I look at comps for properties I'm researching. Often there are comps that were clearly sold at wholesale price, but I don't know if that sale price equals the contract price with the wholesaler or if it's the contract price plus the assignment fee. For a double-closing, I know what the latest sale price reflects, but for just an assignment of contract, I'm not clear on which figure gets recorded as the sales price. 

Lenzy Ruffin, Visionary Realty Investments, LLC | (240) 492‑6654 | http://www.lenzyruffin.com

Usually the sale price is what is on the contract. The title company will then add the assignment fee ($10,000) as a line item to be paid by the buyer at closing. So the sale price will be recorded as $40,000.