Posted by Dave in NOLA on July 22, 2003 at 14:44:07:
Assign this property, but not for 24k. Assign it for 30,000 and pocket 15 grand. The rehabber that buys it will still make around 20 grand - making it a good deal for everyone.
resell or assign - Posted by steve
Posted by steve on July 22, 2003 at 10:35:19:
hello out there…just got my first wholesale deal under contract.can i get some advise on which way to flip it. resell or assign?
what are the differences and would i get paid faster with one or the other
details
contract …15k
only cosmetics 3k
market value 47k-55k
flip for…24k
sell or assign?
thanks much
steve
Neither - Posted by Randy
Posted by Randy on July 22, 2003 at 15:44:26:
Flip it with Owner Finance; sell the note in a simultaneous closing. Your contract price is $15k with only cosmetic repairs needed of $3k and a market value of 47-55k. If your buyer had marginal credit he/she could get 75% financing with 5% down.
So it looks like this
First 75%LTV of appraised value ($50k)=$37,500 (Net to you after discount $34,500)
Down Payment=$2,500
Net at Close $37,000 plus the 2nd providing an income stream.
Carry 2nd for balance=$10,000 (you could add the discount from the first $3,000 giving you 100% of appraised value). Or reduce your 2nd to cover the repairs. IMHO Email me if you want more info.
RESELL! - Posted by BigHarold
Posted by BigHarold on July 22, 2003 at 15:29:32:
Then, even though you have to pay double closing costs, you make your money and NEITHER SIDE HAS TO KNOW HOW MUCH!! That’s how I like to do it - plus, in my experience, investors don’t like to come up with a big assignment fee up front, before they have the property to begin with. Just my experience.
Harold Wilson
Real Estate Investor