Re: Legrand’s opinion on wholsaling vs assignments - Posted by Frank [Pgh PA]
Posted by Frank [Pgh PA] on April 24, 1999 at 18:22:56:
I attended LeGrand Boot Camps and I have basically been doing deals using the information I learned there. I’ve “tweaked” it a little bit to place my focus on REO’s. Whenever I talk with re-habbers the first time, I let them know that I’m an “Investor” and that I’m going to make a profit. If they are interested in the property, I let them know how much I’m making on the deal…in fact, the “Assignment Form” From LeGrand states the amount I’m charging for the Assignemnt. I don’t worry about it for 2 reasons. If I’ve followed Ron’s formula for determining MAO [which I always do], I know there’s a “fair” amount of profit for the re-habber[at least 20% of ARV] built-in. The other reason is, if they really want to know how much I paid for it and if the Seller really wants to know how much I sold it for, they can get that info right from the court house…plus, in our area, the newspaper publishes all of the Deed Transfers after they’ve been recorded.
If the re-habber thinks I’m “making too much,” then they can walk. My attitude is, it’s a good deal and you’re not the only re-habber in town. After you’ve run your first “Handyman [“Handyperson”] Special” ad, you’ll quickly realize this. I still have re-habbers who answered the first ad I ran years ago, calling me to let me know they’re ready for another project…and please let them know when I have one that fits their criteria.
Wholesaling vs. Assignment. When wholesaling, you take Deed to the property and pay closing/holding costs, with Assignments, you’re just Assigning your Purchase Agreement over to your buyer… no closing/holding costs.