OfflineI'm want to lock-up a property on contract to assign,with the option to sell it outright,for a larger profit.If I do that,then I become the seller and closing costs become due,right???
Can they be taken out of the escrow at the end or should I ask the new buyer to pay for these fees???
Any helpful suggestions would be appreciated !!!
Thanks!
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If you’re wanting to do an assignment of contract you first need to have qualified, cash investors lined up. So when you put the property under contract, get an accepted offer, you’ll then be able to simply give the purchase contract along with your assignment contract to your cash investor.
Remember 99% of banks will not allow assignments, so you should be assigning a “personally owned” property. There are two contracts when assigning…..
The real estate purchase contract between you and the seller and the assignment contract between you and your cash investor.
So let’s say you get a property under contract for 100K and your assignment fee will be 5K…your investor (or if you're using a REALTOR) they will take both contracts to the title company or real estate attorney to close.
Your investor will pay 100K to the seller and the title company or real estate attorney will cut you a check for 5K, your assignment fee. Therefore you’ll have no closing cost because your investor is actually buying the property. You are only getting the property under contract for your investor….
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