Assignment fee help.

[Account Closed]

Good morning everyone!  

I am new to the wholesaling part of real estate and decided to focus on doing JVs right now and jump in later. I contacted another wholesaler because I have an investor looking for homes in the areas he is wholesaling. We talked and he was a great guy and wanted to do a couple JV deals with me. We started to talk about assignment fees and how we would like to split them, he told me that he doesn't split assignment fees and that I would need to add my fees on top of his. Have any of you guys come upon a similar situation where you were asked to add your fees onto the other wholesalers? Is this something I should pursue with this wholesaler or should I move on? Also, if I do decide to add my fee on top of his how does the contract work? Do I need to have a contract with only the buyer (investor) or should I have a contract with the other wholesaler stating that we will be working together and that we will not be splitting the assignment fees but adding fees together? Not quite sure how to approach this...... Thank you for all your help and advice!!!

[Curt Davis]

This means that if you partner with a wholesaler in this capacity you will also have to use the closing attorney they are using.  Make sure you have some type of signed agreement in place so when you send over the assignment contract to the closing attorney they know exactly where the funds are going.   

What you might do on the front end if if you have a buyer, make sure you know what the wholesaler you are partnering with is looking for on the front end before you present the home to your end buyer.  for example, wholesaler has a home he wants to get say $100k for and that includes his fee, you bring a buyer and you can sell it for $110k then you should make $10k at closing.  

Good luck