OfflineI have a few questions when assigning a contract. After meeting with the seller and signing the purchasing agreement, you then find your seller and assign your original contract over to them right? They then assume the buyer's rights and they pay you a finder's fee and an assignment fee right? How do you get your money for these 2 fees ? Where do you go to pick your money up ? How much do you charge for an assignment fee ? I know a finder's fee is between 2-3 %. Also should you tell the original seller that you plan to assign the home to another investor ?
Any help would be greatly appreciated.
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bossman..
First off let's get the definitions straight:
Assignment of Contract - you are the buyer in which the contract is drawn and "locked" up per your escape terms. You collect the assignment fee upon closing, just make sure you have "and/or assigns" in your contract.
Finders Fee - this is typically collected through signing a promissory note with another investor in which you've done all the leg work and just present them the opportunity to get a nice property with them skipping out on actually finding it. Hence, finders fee. You can collect the finders fee on whatever terms you agree with the buyer/investor on.
you may want to look in todays posts for one that reads: Bird Dogging - How to get Paid
http://deangraziosi.com/node/3783
It will answer all of the questions you have just asked
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
So after all the negotiations and contracts are signed, do you collect both fees or just 1 ? How much do you charge for an assignment fee ?
it is one or the other, not both. assignment fee can be what ever you guys agree on. 10k 15k 20k....as long as the investor can still make up to a 20% profit when s/he sells it. (most that I have dealt with want 20%)
Don't Wish the Past, Create the Future! - DH
it's one or the other, their 2 seperate tasks, with differnent motivations, like csabens put in his post, 2 totally different things, o.k.?, SULLY.
YOUR HERO, SULLY
Which one is best ? the Assignment ?
Which one is best ? the Assignment ?
assignment is. Cuase you could get ripped off when doing finders fee.
just my opinion
Don't Wish the Past, Create the Future! - DH
How do you get ripped off, can you get more money with an assignment ? How do you arrive at the assignment fee amount ? Basically how do you and the investor decide if it is 10k, 15k , or 20k?
ASSIGNMENT, this is the fanned favorite, because when you do a RE-ASSIGN, you have already "LOCKED UP" the property, meaning no one else can buy it, they HAVE to go through you no matter what, with a "FINDERS FEE" it's easier for an investor to get around, cause nobody purchased the property, even though you would have the investor sign a PROMISSORY NOTE, theirs ways around that, i'm sure, stick with ASSIGNMENTS, SULLY.
YOUR HERO, SULLY
Thanks a lot everyone. I'm gonna use all your advice to lock up a deal by the end of the week.
How do you and the investor arrive at the assignment fee amount?
The investor doesn't arrive at the fee, that's the beauty of holding the control of the contract, you TELL him what your assignment fee is, he'll either accept it or refuse it. So you can either move on to another investor or drop your fee, but YOU decide what the fee should be. It's what you think your time and effort is worth for finding and tieing up the deal.
Hope this clears it up.
Elena
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
figure out the ARV. Then add what you paid plus what he will pay (the assignment fee) plus the repair costs and estimate some holding costs.
Take the total of ALL costs and subtract that from ARV. The investor will more than likly want a 20% profit. Adjust fee accordingly.
Don't Wish the Past, Create the Future! - DH
How can they get around that? And if I should lock up a deal instead which I would LOVE to do - HOW DO I DO IT WITH BAD CREDIT AND ZERO MONEY?!?
Sully - Also, check out my new post - I appreciate your advice
http://deangraziosi.com/node/5948
http://deangraziosi.com/node/3783
It will answer all of the questions you have just asked
Anybody know where this post went? Was curious to read it, but it comes back as an error! Anybody?
Conny
"POOR people own big TVs. RICH people own big libraries."
conny it is still there, the link to it is on the error page, i was just reading it.
Just do it,don't be afraid to fail,failure is just a stepping Stone to success
What great resources Rina, Elena, and yourself are. You share info that some people would spend some money trying to obtain. I guess that is one of the great benefits of being a part of this "family." Pas. Greg
I enjoyed reading the article on 6/4/08 concerning about this field. It seams that you have experience in this field. If possible, can you send me a more accurate information in this subject on how its done properly? Because, I'm having trouble putting together the pieces together through research. It's too much different infomatiom out there which makes it confusing for me to understand. Also, I'm planning on pursuing this field for the first time; I need to arm myself as much information as possible in order no to be taken for a ride. I'll be waiting for your response. Thank you.