OfflineI was just wondering if you are using a REA in an assignment what is it that they receive? I am new to the DG family and i feel like assignments is a good way to get started. If anyone has any advice i would appreciate it.
Thank you,
Michael
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The REA is paid by the seller unless there is an out of the ordinary agreement otherwise. The going rate is 6% but the agents have to split that with their broker in charge/office and if there are 2 agents (one listing and one selling), they split the 1/2 that goes to the agents. At any rate, you do not pay them normally... the seller does. Hope this helps.
Shirley
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Always read the contract. It isn't a LAW that the seller pays, everything is negotiable and you need to make sure you know who is paying the REA in every transaction.
When assigning a contract, the agent always follows the contract to closing. So if the buyer is paying the agent then your buyer would pay (because they replace you in the contract in the case of an assignment).
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Michael,
*IF* you are using a RE Agt, I presume they are helping you to locate and get a given property under contract. In that sense, the RE Agt is working as your Buyer's Agent & will get roughly half of the total commission, less any fees or percent to their Broker (the Seller's Agent and Broker get the other half of the commission).
So now you have the property under contract...and your Buyer's Agent will get their commission at closing. You, the Wholesaler have your own end-buyer and Assign your contract to them for whatever fee the two of you work out. Your Buyer's RE Agent *DOES NOT* get another commission off of your assignment contract.
When your end-user buyer (i.e. Rehabber, Landlord, etc.) goes to the original closing, that is when your RE Buyer's Agent gets paid. Hope this helps.
To all of our continued success.
--Walter
Everyone here is very helpful and it is so refreshing to be surrounded by so many good like minded people. i was wondering one other thing though does anyone know if assignments are legal in MA i know that this state is a tough one for REI. Thank you all for everything you have all been so helpful already and i hope to one day be in a place where i can help others one day hopefully soon.
Thanks again,
Michael
Michael,
I'm not an attorney, and I don't play on on tv (jk). But seriously, yes, I would think assignments are legal everywhere. Basically what you are doing is selling (assigning) a contract. Selling contracts is a perfectly legal business and is done every day.
Let's look at an example. Do you own your own home there in Mass.? If so, are you still making payments to the EXACT same bank where you originally got your loan? Chances are if you have had the loan for any length of time, it has been sold (i.e. assigned) to another bank or mortgage payment processor. This is a very common occurrence (i.e. the buying and selling of notes {mortgages}). So why should it be any different for us?
Now to be fair, you did say that Mass. is unique (and you certainly have that right). But I would certainly think that notes (mortgages) are still bought and sold even in Massachusetts. Good luck.
To everyone's continued success.
--Walter