Wholesaling - Assignment Fee @ Time of Assignment

[Duncan Hayes]

This morning I read an interesting post within a REI group I participate in on Facebook.

A gentleman in there stated that he requires his assignment fee at the time of assignment, prior to closing. He stated that it’s not the person assigning the contracts job to remain in the deal, but to just assign the contract instead of continuing to deal w/ the seller or closing agent.

This really intrigued me and it does make sense to me. Is anyone else that wholesales implementing this approach? If so how did your buyers respond to the request the first time you set the expectations?

Thanks in advance!

[Greg Dickerson]

I think it’s a great strategy as long as the deal clears title. A lot will depend on the property, the market and the amount of the fee. Most deals require a non refundable deposit so may as well get the entire fee upfront if you can.