Pros:
Double close: investor does not know how much you paid, therefore, does not know how much you’re making on the flip. $5,000 is a big profit on a house you pay $14,000 for.
Assign: Less overhead (atty. etc.)
Cons:
Double closing: the overhead
Assigning: investor may not like how much money you’re making and be weary of doing business with you.
I’ve heard a lot of times that people that flip/assign put a price/% limit on assigning. Like $3,000 or 6%.
I just put a contract on a rehab for $14K. I don’t want to get my hands dirty, so I want to sell it immediately to another investor who’ll give me $19K.
Should I assign the contract for $5K, or should I do a double close??
I would just assign the property over to the investor. Instead of a three thousand assignment fee just make it a five thousand. A double close in this case would not be the most profitable scenario. Just remember that not all investors are willing to pay just three thousand for a profitable deal.
Regards
Steve