Owner financing on an assignment
I have a seller that agreed to owner financing on a property. I want to assign the contract to a contractor/investor that has already looked at the house and wants to buy it with the terms I have negotiated plus the assignment fee.
Do I just have the seller and buyer setup the note between themeselves and have my buyer sign the assignment contract? I could have my buyer create a wrap around with me and I could collect the difference but that almost seems too complicated.
Also, have you every collected part of your assigment fee up front and then the remainder in installments? I was going to collect 5K up front at closing and then the other 5K in two payments.
Thanks!
Brent,
You could do a wrap with the terms you have there. You could do an option from yourself to the buyer and assign the contract to the contractor. You could buy in a new entity (trust or LLC) and sell the entity. You could close twice A>B then B>C. That's the great thing about real estate, there's a million ways to skin the cat.
Regardless you can put in those terms in all of these scenarios if you are writing the contract. If you aren't then you'll have to you'll have to work off of documents by default instead of documents by design. Which one would you rather have?
so a wrap is what I was thinking...here is the scenario
Purchase price: 130,000
Down Pmt: $7150 (covers their back taxes)
Terms: 122,850 at 5% amortized for 30 yrs with 5 year balloon
Terms to my buyer: $148,000 , 20% down, 2 pts, 8% interest on a wrap
