Hey, I am starting out Wholesaling and I have a deal underway with an assignment fee of $91,000. Noting the profit I am going to make I wanted to undergo a Double Closing. I was wondering about 2 things. The first being are there any assignment contracts someone can send me that states my assignment fee within the Sale Price, and the second question was, are there a different set of contracts for double closing, as opposed to a regular closing.
Here is my exact deal.
I got a home under contract for 200k, and I found a buyer that will pay 291k. What contract can I use that hides my fee, or what can I do to hide my fee.
PLEASE ANSWER IN DETAIL...I AM VERY CONFUSED and this my biggest deal yet and I dont want to mess it up AT ALL!! PLEASE HELP
Well I'm sure different rules apply in different states / provinces. I have done double closings. There is no assignment fee in the transaction. Basically you have 2 purchase and sale agreements. 1 from the seller to you for $200k and another one from you to the buyer for $291k. You will need a lawyer who is experienced in double closings so you don't have to qualify for the first transaction. In this case neither part will know of each others deal so your profit will remain unknown.
If you can't do a double closing, for some reason, you will have to assign your seller contract to your buyer with your fee specified in the assignment contract. In this case the buyer will see your fee.
I have also donecassigments whereby I have assigned my buyer contract to the seller which is less of a concern since the seller is usually motivated to sell and doesn't care about the fee.
But the key here is finding an experienced lawyer to navigate all this for you. They will know what to do.
There is no “assignment fee” in a double closing. You likely will need to find a Transactional Lender.....they lend you your purchase price, then you sell the same day to your buyer...will cost you 1-2% of your purchase price.
@Jim Pellerin Thanks so much that helps immensely, and I am based in NYC, so I am almost certain double closings are legal in this state.
@Wayne Brooks I have heard that I can avoid transactional funding by having the end buyer coming into the title company to close first putting the money in escrow , before the seller comes in to close just hours later.
no assignemnt fee in double close
Thank you so much to everyone who has helped! I closed the deal yesterday. I am super excited and would be stoked to help anyone else in finding great deals containing more than $60k in profit. For more inquiring on how I acquired and set up the deal, send a friend request and inbox me. I would be more than happy to share my knowledge. SPREAD KNOWLEDGE TO GROW WEALTH!!!