Assignments Of Land
Hi All
My name is Thomas and this is the first time I have posted at this site.
I have been recently looking into purchasing land and attempting to assign a contract to another prospective investor. I have been looking at property in AZ through this realty and have come up with property ranging from 120,000 to 300,000, which needs to be developed.
I have an investor who said they can get buyers for the properties and I am adding and extra 100000 to the price. She does not know I am adding this additional amount but she said her buyers are willing to invest the money.
How do I keep her from knowing that I am adding on and extra 100000 and just assign the property over to her?
The only problem I have is that the realtor I am dealing with does not want me to do a double closing incase his client finds out that I and adding 100000 to the price and still being able to get a buyer for it.
I hope I have explained this clearly.
Thanks
Thomas
:-? [ Edited by tfshenko on Date 09/23/2004 ]
Thomas,
Why do you want to hide your profit?
The fact is that if you don't have a contract on the property, you have no right to sell it. That is called acting as a broker without a license, and it carries with it a stiff fine and jail time. If you do have a contract on it, then your buyer cannot go around you. If there is enough in the deal for your buyer, then he should not have a problem with you making money. If he does, then you have the wrong buyer. If there is not enough in the deal for your buyer, then he isn't going to buy anyway. Your buyer will eventually find out what you are making anyway. And when he does, he may resent you for hiding it from him. If that happens, you will never do business with him again, and chances are you won't do business with anyone he told about his experience with you. Wouldn't it be better to build a long term business relationship where you get repeat business? Lets say he does think you are making too much. You found the place, put a contract on it, and started the title work. You have a couple hours of work at risk. Would it be so terrible if he only wanted to give you $50K for that couple hours of work? What if he only wanted to give you $10K for a couple hours of work? Where else in the world can you get paid $10K for a couple hours of work? Since you are concerned about getting the fee you are requesting, then it seems you too think it is high. If you aren't convinced it is worth it, why would you expect someone else to think it is worth it.
I know there are national gurus and infomercial folks who say you can get rich quick. The fact is that this is a business like any other. You need to build it with a strong foundation. Get away from this cloak and dagger stuff. I know other people are doing it, but they will soon get caught, and be cooling their heals in a cell with a roommate name Bubba, unable to spend the money they took while doing something illegal. Be honest, and upfront with your business dealings. Network with other investors. Build your team. You will have a much stronger business, and a much better reputation. And, your chances of ending up somewhere where you can't spend the bazillions you will make will be low.