I Have A Question About An Assignment
I have a house on contract to buy I will be doing an assignment most lenders will only allow up to $3,000 to be paid as an assignment or it could kill the deal. Is there somekind of separate contract that can be drawn up with the person I am buying from that can be signed stating that after the closinf they write me a check for my fee. I know most lenders will only a $3,000 assignment fee. I usuall give this to the tilte company so i get me fee after the closing but is there something else i can do with the seller to get like a $5,000 or more fee.
Sounds like you have come up with a solution you like - after closing the seller will give you a check....
If you can make that work (and are keeping it all legal - i.e., no mortgage fraud, etc...), that is a good solution.
Just make sure you are actually going to get your $$! I mean, what will you put in place to guarantee the seller will pay you?
Happy Investing,
Steve
I was thinking I could type up a investor disclsoure that they sign that states that after closing they will pay me the fee that we agreed to. I was just wondering if it is legal. I am in Texas. There is no kind of mortgage fruad or anything like that. I just wanted to make sure I could do this with them.
what do you mean mortgage fraud?
i have a question...if your buying a house for 400k and want to assign the contract for 450k to an end buyer..and the contract is assignable..how would u go about doing this?..would the end buyer be able to get a mortgage for 450k.....and with the mortgage..pay off the seller 400k and the 50k to me..if that possible
I have done several assignments. I usually do all my assignments with the same people (rehabbers). I have done assignments for up to $22,000. All I do is an "assignment contract" that refers to the purchase and sale that was originally to me. I have this signed and notarized.
The reason there is no problem with this is because my buyers use hard money or pay cash. It all depends on the lender. The way most of the newer people look at this, is that they think you just find any old buyer and do the assignment. This may be possible, but not for big profits. You need to set up a relatationship with a rehabber or somebody who pays cash.
goodluck, Ryan[ Edited by ryand on Date 09/24/2005 ]