Wholesale Contract Assignment Cost in Fairmont WV

8 Replies

Hello,

I'm new on this forum and in this business as well, 

I have this house in Fairmont WV, the seller wants 70K and ARV is 143K, repairs needed are approximately 40K,

my question is, how much money should I ask to assign the contract to a cash buyer?

@Yolanda Eiland seems like a reasonable number. @Dante Gonzalez 's deal is really slim to begin with, so he wouldn't be able to charge much. If he paid $50k for that property, theres more room for him. At $73.5k he'll have a hard enough time finding a buyer, so adding more to that would be a mistake.

@Jason D. Thanks for the information. I can understand that. So if he wanted to make more money off the deal he'd need to negotiate a lower price with the Seller. Also do you always use 5% or are there certain types of deals where you would use a different % to come up with a Contract Assignment fee? 

@Yolanda Eiland I dont assign contracts, so it's not something i put much thought into. If I were the buyer interested in this property as an investment, my max would be about $65k, based on the limited information that he has given here. So if he pays $70k, he would have to pay me to take it off his hands, but if he paid $50k, he could charge me $15k and we'd both be happy. Before you put a property under contract, you need to be very sure of 3 things.... what is the ARV, what are the rehab costs, and what will an investor pay for this property, based on the other 2 values. If you dont know those 3 things, you will probably lose more than you win.