Closing For a Assignment Deal

Travis,

you just need to worry about your buyer (assignee); once he buys the property, he may either fix and flip, or fix and hold. Some investors that buy wholesales, will fix and then list with a realtor, or fix and have a property manager rent for him.

Good luck!

Valerie

Thanks. On my Assignment of Contract, do I fill it in with just my FEE amount or do I fill it in with the price of the offer I made with my fee added in?

In addition to what Valerie said above:

Your assignment contract is between you and your buyer, and the FEE he is paying for the contact that you have between the seller and you. Your buyer is bound to the terms and price of the contract between seller & you.

Be sure to get part of your fee (non-refundable)at time of signing assignment contract, so if the buyer backs out at least you get paid something and then you have to start over to find another buyer or cancel the contract with seller.

I was thinking about rewording my assignment agreement so it will state that the FEE full amount is due and payable today. I have an audiobook by Gregory Warr "Creating Wealth With Real Estate" and he said that's how he does it. I rather do it that way and still attend the closing to make sure everything goes smoothly.

If I do a double closing, which party won't be able to see how much I got paid? The seller or my end-buyer?

Some ppl collect fee at signing of assignent and they are done

Some collect partial fee at signing and the remainder at closing or elect title co to mail check (50% now 50% at close)

check your assignment contracts, some state fee is due NOW (at signing)and non refundable

when 'buyers' on assignments PAY out now or at least 50%, they tend to follow through with the deal to avoid losing the non refundable fee

So, maybe if I just stick with them paying my whole FEE amount with the whole amount due once they sign the assignment with it being non-refundable, maybe that should weed out the ones that aren't serious and the ones that will follow through.

I just really want everything to go smooth because I have some really motivated sellers and I don't need anything to back out from me helping them.

Collecting upfront non refundable should weed out liars from buyers

Should I get a notary to notarize my documents or I really don't need that?

You don't even need to GO to closing to do an assignment. Lock up the property with a contract - make sure it's assignable. Get your end buyer, tell him how much you want, agree on the amount. If he can pay that amount in full, make an appt. at your attorney's office. Tell him to bring your fee in full and his signing hand. Have him sign a purchase agreement, a Non-Disclosure/Non-Circumvent agreement, and an assignment of contract agreement. He signs all 3 in front of your attorney, get them notarized, collect your check (you're now legally "out" of the deal). Contact your seller, inform him you have sold your position in the agreement to another party. Tell him, "Don't worry, he already agrees to the price and terms you agreed to with me. The only thing changing is the person buying it from you." (You're now "officially" out of the deal). The only fees you'll pay is for your attorney's appt. time and any notary charges. No closing costs, no waiting to close, no closing setup for you! The language and process may vary slightly from state to state. Always have an awesome RE attorney and check with them first.

Usually you want to "double close" (or anything similar to it) when you want to collect more money, or your end buyer can't pay your assignment fee up front. Double closing to collect $5K or less might be more trouble than it's worth, especially if you have to pay any closing costs yourself, because it'll burn up the small amount due to you in a hurry. Some title companies have an attorney on staff, and they might be willing to do the assignment right there, for little or no extra fee. Go get 'em!

"If I double-close, which party will see how much I made?" - If it's set up correctly, NEITHER buyer or seller will see how much money "was left on the table" for you. However! That doesn't mean end buyer and seller can't meet up next week with their contracts and a calculator and figure out how much you made!

That being said, if your end buyer is an investor, "leave plenty of meat on the bone" (RE: Greg Murphy). Your goal with investor buyers is repeat business. You must leave the majority of the profit for them.

"Should I have my documents notarized?"
Letters of Intent, offers, and initial purchase agreements? - Unnecessary.
Every other document you can think of? - Yes or at least, better safe than sorry.

Always ask your attorney first - The only rule that applies to EVERYONE.

How would I get documents notarized and cut a profit check through wholesaling from a distance? For example I live in Canada and I plan to wholesale properties in the States.

You asked a question that shows your mind is moving...good. By adding the additional detail you complicated the question and may have worn yourself with worry.

Keep this business simple. You already received a response but all you needed is the buyer to whom you will assign the property.

If you brought in an additional buyer would buy from your buyer I am sure you investor buyer would love it. But...why do this when you could cut the investor buyer out and sell to the final user and make the money?

Simple, easy...just one buyer.

People from a distance can go to banks to have items notarized. They can then fax the document to you and mail the originals as needed.

Your closing companies can work with title or closing companies in the states to work the signing and notarization of the documents here.