Assignment
i am needing a little guidance. i am pursuing residential homes with a 65% to 70% owed on them and in areas where like properties sell for approximately twice the amount of the owed mortgage and have been told that selling my interest in the preforclosure properties (once i get a contract from the owner) for an assignment fee of 1% to 2% is the norm. i would appreciate imput from someone on this.
i am in southern california.
for example:
i am able to contract a home that has a total of $70,000 owed on it -
is in an area where like homes are selling for $200,000 ... 1% assignment fee of $200,000 would be $20,000 and 2% assignment fee of $200,000 would be $40,000 fee, right??
thank you very much for your help.
First of all, your premise is completely unfounded as sales and equity have no relationship. You have no understanding of real estate.
Second, if your math skills are this weak you need to go back to school before you jump into the business world.
my posting above was worded incorrectly, therefore an answer could not be provided, i will repost my question later. the harsh comments posted were unnecessary.
Redo your math.
Quote:
On 2007-10-20 16:51, lkn4re wrote:
i am needing a little guidance. i am pursuing residential homes with a 65% to 70% owed on them and in areas where like properties sell for approximately twice the amount of the owed mortgage and have been told that selling my interest in the preforclosure properties (once i get a contract from the owner) for an assignment fee of 1% to 2% is the norm. i would appreciate imput from someone on this.
i am in southern california.
for example:
i am able to contract a home that has a total of $70,000 owed on it -
is in an area where like homes are selling for $200,000 ... 1% assignment fee of $200,000 would be $20,000 and 2% assignment fee of $200,000 would be $40,000 fee, right??
thank you very much for your help.
I have no answers for you. I have done several wholesale deals and have gone to several guru wholesaling seminars, and I have no answers as to how you can get an assignment fee on this deal.
There are a coupe of issues. If the bank says assignnments are not allowed, then they are not allowed. Your guy is getting financing and his mortgage company will not allow you to get a 25k assignment and it will not allow him to have a purchase and sales contract with someone who does not yet own the property - you.
If the buyer had cash, you could sign a Purchase and Sales contract as a Trustee of a Land Trust, or as a Managing Member of an LLC. You could then sign over your LLC or Land Trust to the cash guy. So the entity is buying the property but the principles inside the entity have changed. Your transaction fee may still be problem on the HUD. You would have to talk to the title company. You may have to be paid outside of closing.
If I used a land trust to sign the contract and created the land trust with the beneficiary being the end buyer, could he get a mortgage to his name since he would be the beneficiary of the land trust? Then he could just pay me the assignment fee outside of the deal in cash, and get a mortgage for the amount on the contract.
Would this work or am I missing something?
If you have an "insurable interest", deeded or not, you actually should insure it. Think of the car you buy that you have to insure (with a loan) even BEFORE the title transfers, as an example...
Are you having problems getting it insured?
[addsig]
30-40k after all costs.
pm me so i can explain further.