Offlineare banks and oter lenders likely to balk when it comes to dividing up portions of a properties equity. For instance, if you are purchasing a property on assignment to turn over to an investor, and lets say you would like the home owner to get there asking price, plus $2-5000 of the equity to get a new start and then my fee for putting the deal together (unknown amount)hense leaving the buyer(investor a large chunk of equity remaining.) Would a bank divide up say half of the properties existing equity to cover these transactions?
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First and foremost in an assignment situation, the investor is usually the main component in the transaction. They will tell you what they want, the style, area and price range that they are interested in buying in. After that they will tell you how much money that they want to make off a deal maybe a flat fee, or a percentage of the ARV.
After you have recieved this you have your marching orders to find what it is they are looking for. You will have to find sellers that are motivated to sell, because not only do you have to take into consideration what the end buyer wants, you need to make some money off the deal as well.
When working on finding the perfect deal for the end buyer you finally locate a motivated seller where all the numbers work. You place a contract on the property and notify the end buyer that you have found what he is looking for. Now remember, once you have finalized an offer to purchase with a seller your end buyer can not go back and renegotiate this deal. The end buyer agrees to purchase the contract from you as you have written it.
If a seller wants or needs money from the transaction they need to make sure that what they agree to sell the property for will cover everything they are liable to pay for. This could be things like their mortgage, real estate agent fees, title insurance, ect.
When you are structuring a deal you need to ensure that you have all the numbers correct, you are the one dividing up the equity up in the property.
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