OfflineOkay guys, so I think I have deal on deck. I have a seller who is motivated to sell. I also have a cash buyer who is looking for the same type of home I have to sell. My only problem is I'm not sure how I will get paid or how much I should get paid for the deal. I live in AZ and currently we have a lot of buyers, but the sellers list is rather short. If there is something that does become available cash buyers are paying for homes higher than the list price just so they can improve their chances of getting the home. How can I get paid if homes are selling for higher than list price.
Thanks in advanced
Phil
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(Assuming this is not a bank owned property). You negotiate a price with the seller and put a purchase agreement on the property with an assignment clause (or simply put in the buyer line "your name and/or assigns".
Then go to your buyer with an assignment of contract, which becomes an addendum to the contract. The assignment states how much money you get paid as an assignment fee. You are essentially selling the contract to your buyer. You get paid in the closing (or if you can negotiate it, have your buyer pay you when he signs the assignment)
It doesn't matter if the house sells over asking price or what - it's just what you negotiate with the seller & buyer.
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
Thank you, whats a good ball park fee to charge the buyer for assigning the contract over. Is it a % or is there some evaluation equation I must do to spit out a rough dollar amount?
you may want to read some of the older threads on wholesaling where all the basics are explained; just use the search box on the top left of this page, and enter the word wholesaling... there is plenty of information, right at your fingertips...
here's a link to one of them
http://www.deangraziosi.com/node/5585
wishing you success,
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
On my deals I calculate one-third of my buyer's profit as a starting place for my fees. If you would like to discuss this further you can call me on the advisory line.
Good Luck.
Roy Voeks
Official RE Coach