Assignment Fee - Posted by Deon

Posted by Matt in Mich. on August 01, 2003 at 11:37:11:

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Assignment Fee - Posted by Deon

Posted by Deon on July 31, 2003 at 20:16:41:

HI, I recently got a very nice house under contract, however I would like to wholesale it via assingment of contract. My question is, how much should I ask for? Here are the numbers: arv=180k-195k, repairs=10-15k, got it under contract=132k. I am not trying to make a killing, however I dont want to give it away either, any responses would be greatly appreciated. thank you.

Re: Assignment Fee - Posted by Kristine-CA

Posted by Kristine-CA on July 31, 2003 at 20:26:52:

Well, if it were me, I’d try to get as much as I could for it. Different buyers have different needs. A buy-and-hold investor who is planning to rent it may not have as high a profit requirement as rehabber/reseller.

A owner/occupant might be willing to pay 170K. A buy and hold landlord will be looking at rents vs purchase price and repairs. A rehabber would probably like to get it for 140K or less.

Do you have a buyer’s list and have you talked to rehabbers? You won’t really know until you put it out there and see what other investors think of the deal.

Sincerely, Kristine

Re: Assignment Fee - Posted by Matt in Mich

Posted by Matt in Mich on August 01, 2003 at 10:58:35:

Interesting Kristine.

Have you assigned a contract like this to an
owner-occupant? Seems that most posts deal with
assigning to someone who will rehab and sell.

I can see what you’re saying - that if you can assign
to an owner occupant the profit for you would be quite
a bit more. If you have done an example like this - I’d love to read it.

Thanks,

Matt in Mich

mattc670 at yahoo dot com

Re: Assignment Fee - Posted by Kristine-CA

Posted by Kristine-CA on August 01, 2003 at 11:11:20:

I’m not suggesting assigning to an owner/occupant (which can be done, of course). What I’m suggesting is that the deal is worth more to different buyers. And that you have strategies lined-up to sell to the buyer that makes the best offer. Double closes make more sense when the spread is larger. But there are seasoning issues to consider. Just depends on who the buyer is, how much cash they have, who the lender is, etc.

Sincerely, Kristine