Have a deal where I didn't get the end buyers to show POF. Few days to closing they call and tell me that they are still working with the bank.
Purchase price $13,000 assignment fee is $9,500. The buyers are emotionally invested and want the property badly. So I’m thinking if they bring enough to cover the purchase and closing, allowing them to put my fee on a monthly installment.
Has anyone done this before? What should I look out for?
Thanks so much!
You should record that as a mortgage / deed of trust to ensure you get paid.
@Lina Bibikov Assignment fee is almost as much as the property purchase price...
If you are going to wholesale you have to learn not to get emotionally attached to buyers or sellers. Business is business. If they cannot afford to purchase the property including your wholesale fee you have two options. Reduce your fee to make the purchase affordable or sell the contract to someone who can afford it. I would advise against accepting payments over time for several reasons. 1. Buyers will know what your fee is and probably will have an issue with the fact that its nearly equal to the price of the property.
2. They can just stop paying you and you have no real recourse
3. You are waiting for your wholesale fee and unable to reinvest that money into marketing, business expenses etc.
My suggestion (if you have the funds to do it) close on the property yourself and then seller finance to the buyers. They can make their payments to you over time (with interest) and you have the property as collateral in case they stop paying.
@Greg Scott thank you, my lawyer is going to do just that
@Lydia T. Thank you, taking your advise and double closing.