I Need Some Help Should I assign this deal or double close it

Am I suppose to email him the purchase $ sales contract which I made with the seller together with the assignment of contract?

Between me and the seller who is the wholesaler. I'm definitely going to ask him for a non-refundable $10,000 upfront.

I just spoke with my buyer and he is offering $145k and I was like is that the best you could do and he was like yes. So I ask him he needs to put down a non-refundable down payment of $20k and he was like ok and he was like I should send him the contract so he can sit down with his partner. Am I asking too much $45k for assignment fee with a $20k upfront?

When it comes to wholesaling, no matter if you have money or not you're still giving up your rights to a massive potential profit and are only asking for a small piece of the pie so if you have enough room to make $45k with the buyer and seller still walking away happy, then do it.

BUT

remember the old saying in this business, "pigs get fed, hogs get slaughtered."

So sometimes it can be better to move properties at a lower price just to move the deal faster.

Up to you.

You should be able to assign the deal.

Any time you are going to be making over $20k profit, you want to double close, not assign. You do not want your end buyer to know that you are making that much on a deal. It is definitely OK to make that much if there is room, and if your comps are correct on this deal then there is definitely room. This would not be a case of "Pigs get fed, hogs get slaughtered". This would be a very fair amount for you to make.

You would not show him the original contract or let him know what you paid. You will make a new contract (purchase agreement) between you and the buyer.

This deal would definitely be a double close but again, you need to know how to do it. The end buyer MUST be a cash buyer (not getting a mortgage) for you to be able to use transactional funding or have a title co/escrow co/atty lined up who would be willing to do a dry double close OR you will actually have to fund the A-B part of the deal yourself. You DO NOT want to have to fund it yourself unless you have a source that will lend you the money for a short time. Most of us don't have that luxury at this point.

Sounds like a great deal! Make it happen!

Good luck!

Karen

Thanks for the Advice. Learnt some great lessons from deal which will definitely help me in future.

I appreciate it

Great advice karen, yea that sounds totally awesome.

One of my buyers (who own a kitchen cabinet / home furniture company) who was interested in my deal. Actually I had spoken to him on saturday morning (our first initial conversation cuz he call me off my ad on CL) on 11/16/2013 and he was like he is going to drive by the property over the weekend and if its a good deal he would get it square away and he gona talk to his banker and the bank would give me a check for $105k. So on sunday I felt like I should contact him again to make we are on the same page. So I called him sunday evening 11/17/2013 and I was like "I'm just checkin with you and I wanted to see if you got the chance to go check the property yesterday" and he was like "yea I did I went with my other team who have been in the construction for more than 8 years blah blah and if I buy even for $100k and do all the repairs there is only gonna be a lor profit of $20k which is not enough profit for me and closely observed the property and the arv is gonna be like around $165k or something like that." Long story short the property wouldn't work for him but he is still interested in working with me on future deals which I acquire.

There was a lady who I got last night she an investor who seem interested. She told she is going to look at it this morning and check on the code violation and when I told if you like the deal I will need $5k upfront and she was like she woulnt do it but she will put it in escrow since my name is not on the deed. Well I didn't wanna pressure like since she is the only buyer who I think would take it.

Hi TC Miami

My name is Mike Lopez. Im one of Deans Success students. Im in the Miami market and I do 3-4 deals every month. Send me a PM so we can talk about this deal you have

Congrats and Thats good to know

I appreciate your help..