OfflineHello Everyone,
I am new and interested in getting into the wholesaling / Assignment of contracts side of the business.
In real estate it is always important to do what you can to create a win-win situation for all parties.
From my basic knowledge, the 'win' for the home owner in a situation where an assignment of contract is involved, could be one of the following:
1. Come out from a house going into foreclosure.
2. Be able to close so quickly when they couldn't before.
Am I right?
My biggest question is, is it possible to do an assignment of contract and some how get the home owner a small amount of money in cash out of the deal? Or is that absurd?
Any feedback / thoughts / corrections to this post would be greatly appreciated!
Thank you everyone for your time.
Tom
No, you can structure pretty much anything that will make sense.
EX: 3/2 SFR balance owed was $5,500
it was inherited and they wanted it gone plus enough to pay off his $7k in credit card debt.
5,500 to pull a clean title
7,000 to seller for debt
$12,500 NEEDED.
I locked it up at $16,000
Offer to buyer at $21,000
I pulled a $5k assignment fee off
My seller had all his needs met and $3,500 extra and was estatic! My buyer got a property for $21k that needed $8k on rehab and FMV was $64k
So at close I got a check for $5k, seller had a check for $10,500. Buyer paid closing cost.
it was a SFR but had an addition 1/1 with full kitchen and separate entrance, and separate metered. Buyer was a local landlord, going to fix, submit to rezone as a legal multi and pull approx. $1100+ in rents.
Everyone involved was tickled pink! lol
Hope that kind of gave you an idea. If the deals good enough a lot of room and ways to play.
Jen