OfflineI'm looking to assign a property today, My question is to get my fee for it..should I make a deal with the Investor(seller) that if I find him a buyer at his price then he agrees to pay me a certain amount or B should I accept the investor(seller) offer and then offer it to the end buyer at a higher price..How do I do this now??
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***Ms. Highly Favored***
You need 2 contracts: purchase agreement and investor's disclosure.
You negotiate a price with the seller, decide how much profit you want to make and then tell the seller that you will assign the property for x amount more. The purchase agreement will have the price including your fee.
So, if you lock up the deal for $100000 and want to make $10000, the purchase agreement will say $110000. This is because the buyer will take your spot in the purchase agreement and the buyer needs to pay $110000 for you to get your money.
Good luck!
This is what we do in Colorado.
1. Lock up the property with the seller. You are the buyer of the property on your assignable purchase contract You get the property under contract for the price you agree on. We will use $100,000 example. So you have a signed contract in your name for $100,000
2. You have a second contract(the assignment contract)That states you have the property under contract for $100,000. Your assignment fee is $10,000. Total purchase price for the buyer is $110,000. After your buyer signs the assignment contract you take the two contracts to the title company and set a closing date.
The title company will issue you a check for $10,000 at closing.
This is a very simplified explanation that does not cover how your purchase contract is written, what earnest money is put down buy you or your buyer, title search, contingencies etc. etc.
Good Luck,
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
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