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.
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.
In NC things have changed in the last several months. You are NO LONGER able to "hide" your fee's. Either you have to do an assignment of contract and EVERYONE has to know about it with additional documentation everyone signs OR you have to Double Close. Also, if you double close, it has to be with a closing company that has a 2nd attorney since now all double closings must be done with 2 separate attorneys, but it can be within the same firm just 2 different attorneys involved.
If you need Transactional Funding on a double close if you choose not to assign your contracts, let me know. More than happy to help and also refer some closing companies unless you already have someone you are working well with.
@Chad Gray I think a double closing is the only way to truly hide your assignment fee. But if your concern is just hiding it from the seller... you just have to split the closing package between buyer side and seller side, the only one who knows your assignment is the end buyer, it's not disclosed on the seller side HUD.
Let me know if there is any further questions or an update from you @Chad Gray I hope all goes well. Be sure to be fully aware of the new laws in NC and watch what everyone else tells you who aren't familiar with the updates in the state.
Thanks a lot everyone for the responses, very helpful.