Sweet predicament! - Posted by JJ

Posted by JohnBoy on February 10, 2002 at 24:08:06:

When you assign your contract you don’t get option consideration. You take whatever option money they would have as your “assignment fee” instead.

YOU already have the property under L/O. Your buyer is just buying your contract off of you by paying you an assignment fee.

The way you’re doing it would require having a real estate license because you are doing for another with the way you set this up with the seller. If you set the purchase price for $5k more than what you intend the seller to walk away with, then the seller is basically paying you the $5k as a fee since that should be going to the seller with how your contract is structured.

How many years is your L/O for?

Also, ALWAYS ask the buyer how much they can put down before ever mentioning price! When the buyer says I have $9k to put down, then you say…Well, I was looking to get $163,600 out of this, but I’ll let you have it with $9k down and I’ll let you have it for an option price of $154,600 and you can have that price locked in until 3/1/??? with a set rent amount for $xxxx per month! Then take the $9k as an assignment fee and let the buyer take over your contract!

Sweet predicament! - Posted by JJ

Posted by JJ on February 09, 2002 at 23:51:49:

Deal I set up in a co-assignment L/O

Owner owes $154,600 on the house. So we set the purchase price at $159,600 and the owner and I agreed that I would get to keep the option consideration. As you can see there is a $5k window. I have a man interested in the house and he would like to put $9k as option consideration. I have already told the man that the purchase price is $159,600. Also I have already assured the owner that they would receive no less than $154,600. Thus, if the man opts to buy, he will only owe $150,600 however the owner will still owe $154,600. Any ideas on what I can do with this $9k option consideration.