Anyone ever have trouble assigning a deal for more than $10K?

Anyone ever have trouble assigning a deal for more than $10K?

Wholesaler · Mound, MN · Member since 2015 · 2 posts · 0 votes

In my experience it is difficult to get someone to pay more than $10,000 for a contract assignment. Buyers get caught up on how much I am making and lose sight of the main goal, their profit. Obviously it shouldn't matter what I am buying the deal for, only if they can make their margin once the deal is sold.

Double closing is a good solution. However, I would say the majority of the time I use an intermediary. I have someone with a real estate license try to sell the home before I close on it. This way there is some distance between myself and the investor which helps keep some of the emotion out of the investor's decision.

Are there any other tips out there?

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  • Commercial Multi Family Broker · Spokane, WA · Member since 2010 · 139 posts · 27 votes
    11y

    It depends on your negotiating skills.

    "In my experience it is difficult to get someone to pay more than $10,000 for a contract assignment." 

    This depends on the property size. If someone is telling you that you only deserve $10K, and you agree, then that is what you will receive. However, if it is a larger property, and you have secured it for a great discount, then you need to find the buyer that is fair, and will pay what should be paid. 

    Sounds like you may need to find other buyers.

    Best to you!

    TM

  • Wholesaler · Mound, MN · Member since 2015 · 2 posts · 0 votes
    11y

    Thanks Tom! Great advice. I agree it depends on the end value or size of the house. I typically am assigning homes under $100K. What's the biggest percentage of your asking price you have had someone pay for an assignment? Have you ever had anyone balk at the amount you were asking? 

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