Can Someone Please Explain All The Various Methods To Collect Your Assignment Fee?
Hello,
Ive been mind boggled about collecting the assignment fee. I definetly know an investor can pay your assignment fee to you straight out of his pockets, but I know there has to be times that the investor doesnt want to pay you cash right out of his pockets. Please explain all the various strategies you can use to get your assignment fee, including a double closing? Thank You
What do your comps tell you about the fair market value? Appraisals tell you what houses have sold for, they do not tell you the current market conditions, such as how many houses are for sale and how long did they take to sell?
I had a guy call me on a house that he would sell for 600k. He had an appraisal from early in 2007 for 1.2 mil. I was excited. He told me the house needed some updating. Unfortunately, some undating on a 3800 sf house means a lot of $$$. I pulled up the MLS and there was another house the same size, on the same street that was in BEAUTIFUL condition and FULLY REMODELED for 580k and had been on the market for 90+ days. Also there were lots of listings in his neighborhood.
Maybe you have all this covered. Just wanted to meantion it.
If I understand the question correctly, it seems pretty simple. I have been in the game since 98. You only need 2 things, first a title company that understands how assignments work and is willing to protect you and you need a simple purchase contract between you and the buyer. This gives you all the tools you need in order to do a simultaneous closing. Pretty cool you get your assignments upfront we never do, but if you control the deal with your contracts and your title company everything should go fine.
Good luck!!! If you have any other questions do not hestitate to ask. We are all in this together.
Nobody has recorded a lien on a property to get paid?
According to my attorney about 2 years ago when I had a similar problem - placing a lien for something like that could put you in hot water. Better to file a Memorandum of Sale (glorifies sale agreement)
Linlin, I am trying to get paid, not cloud the title. Also, what do you mean "gets you in hot water"?
I partnered with someone who routinely placed liens for his fees. I was a bit leery of that and asked a lawyer. What he said was that filing a lien when there was not a specific bill for specific goods or services was illegal. He said if it was not a situation where you could mail the homeowner the bill and be paid directly then it could not be claimed as a lien. He also said the homeowner could turn around and sue the lienor for 3 times the amount.
He recommended the Memo of sale.
And the new Buyer(s) would be upset that I clouded their title and would have a great case against the title company, since the chain of title was insured.
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Of course, this would be providing I had a legitimate interest (Contract) that I could prove.
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A title company usually bonds areound liens that are out of statute or improperly recorded. They cannot bond around properly recorded liens. Or they should not. In Florida they can get around some liens if the property was homesteaded but a properly recorded lien trumps pretty much anything.
Memos of sale properly executed and recorded cannot be overlooked as they are a cloud on the title and must be resolved. Properly executed in the state of florida means signed by property owner in front of a notary with 2 witnesses and then duly recorded with the clerk of court
My lien would be a mortgage on the property that was signed by the seller.