Options to Hide Assignment Fee at Close

[Chad Gray]

Hello All,

What are some options to hiding your assignment fee at close, particularly from the seller? I'm aware of a double close, but I also read that the assignment fee can be handled off the HUD in a way so it's not visible to the seller which is something I have not heard of before.

To be clear, I'm not attempting to hide the fact that I am assigning the contract, I've been very clear that that is a possibility, just the dollar value that comes along with it.

Thanks for any input.

[Joe Villeneuve]

Set up an LLC as the buyer, not you as an individual. Then sell the LLC to the person that you would normally be wholesaling to for whatever your assignment fee would be. At closing, the buyer never changes, and there is no wholesale fee to hide.

This also protects you from not getting paid, since the new buyer can't buy/close without first owning the LLC (meaning the wholesaler gets paid). This also protects the buyer since once they own the LLC, they own the purchase agreement too.