Posted by Nick on December 26, 1999 at 15:49:59:
In my humble opinion…
I don’t think that there’s anything he can do about it if you’re ready to close. If you’ve gotten that far it means that everyone has fulfilled his end of the deal and if he squaks over your profit and backs out, you could sue for breach of contract.
If you assigned your contract to someone else, you won’t be involved in the closing, the guy you asigned it to will. There is no need for him to reveal anything to the seller.
How can I avoid the seller from finding out about my 14 thousand dollar profit ON AN ASSIGNMENT - Posted by Tarun_md
Posted by Tarun_md on December 26, 1999 at 14:52:59:
I recently assigned a property to an investor for a 14 thousand dollar profit to me. The investor has no problems with what I am making on this deal since he’ll probably make 30-35k on it after fixing it.
However, I am concerned that the seller might literally go crazy once he finds out(sometime in the 1st week of Jan) how much I wholesaled his property for(without even lifting a hammer…hehe)…
I know that by doing a double closing, I can avoid the problem. However, is there a way to avoid the seller(not the buyer) from finding out about my profit, especially on a simple assignment. The reason I am not double closing on this deal is because it will save me 2k if I simply assigned my contract, plus I want to avoid being on the chain of title.
Thanks
Tarun
Here’s how - Posted by Irwin
Posted by Irwin on December 28, 1999 at 06:18:26:
I presume that your investor is going to pay you for the assignment well before the closing with your seller. There is no reason that your seller needs to know how much you sold the contract for since the assignment to your buyer should read simply: "For one dollar and other good and valuable consideration, this contract (If it’s done on the contract itself. If not, refer to the contract particulars)is hereby assigned to ___________.
There is no reason anyone has to mention dollar amounts to the seller either before, during or after the closing.
Re: How can I avoid the seller from finding out about my 14 thousand dollar profit ON AN ASSIGNMENT - Posted by Danny S.
Posted by Danny S. on December 27, 1999 at 18:00:23:
I am more interested in how you FOUND such a good deal. Share please! Was it a repo/reo?
Re: How can I avoid the seller from finding out about my 14 thousand dollar profit ON AN ASSIGNMENT - Posted by Raj S
Posted by Raj S on December 27, 1999 at 03:42:33:
Restructure the assignment contract.Have an assignment contract and a seperate consideration contract.In the assignment contract where consideration is mentioned say " for a sum and consideration as per consideration agreement between Tarun ( assignor ) and Robert ( asignee )"
In consideration agreement between you and asignee mention the assignment contract and your true assignment fee.Make sure your fee is not reflected in the settlement sheet. Have the settlement pappers faxed to you a day before the settlement date and carefully review them to make sure your instructions are followed.Talk to the settlement attorney and the secretaries involved and further make sure that the seller does not get a copy of the consideration contract by mistake. Good luck. You are a good guy.