Newbie In Detroit Have Assignment Of Contract Question

Comments(5)

• 
  pejames7th January, 2004

  Quote:
  On 2004-01-07 10:48, AGOSBY1972 wrote:
  wholesale flipping:
  
  when i get a property under contract with a homeowner of a run down property-say that i get it under contract for $5k and i assign it to an investor and i want to make $5k off the deal would i have the assignment of contract be for $5k (my profit) or $10K (total purchase price for investor).
  You would show your assignment fee of 5K and the price of the house now for 10K...All included in the assignment contract.
  
  
  
  or is it that the title company will have a Contract showing homeowner (seller) & investor (buyer) for $5k and then the assignment btw wholesale flipper (me-assignor) & investor (assignee) for $5k and is that how the title company will know what i will walk away with.
  
  i hope i explained this right.
  
  thank you in advice.
  
  God bless,
  anita <IMG SRC="images/forum/smilies/icon_wink.gif">
  
  
  
  Anita,
  You will have to produce the assignment contract with the appropriate numbers already in the contract with th authorization from the original owner allowing you to assign the property.
  The closing company will make sure the documentation is legal and correct. If you are unsure as to the procedures in your area, contact a local title company and ask them how that will work for you in that situation. I am sure they will be glad to help you. Good luck

• 
  pejames7th January, 2004

  Quote:
  On 2004-01-07 11:11, AGOSBY1972 wrote:
  
  
  
  would both separtate contracts be proof of exactly how much all parties will be paid at closing?
  
  meaning that if i want $5k as a flipper and homeowner wants $5k would both contracts be for the $5k a piece or would assignment of contract be for investors total purchase price which is $10k.
  
  im hoping that this would paint a better picture of what im trying to ask.
  
  thank you in advance
  
  God bless,
  anita <IMG SRC="images/forum/smilies/icon_wink.gif">
  
  
  If I understand right, the homeowners profit would be added in the purchase price of the home and your profit would be reflected as an assingment fee. I'm not sure, but the home owner cant take a fee per say like that, they would just add what they want into the price of the house. Hope this helps

• 
  tbelknap7th January, 2004

  5k on the purchase agreement.
  
  5k on the assignment agreement.
  
  Your investor buyer will take your position on the purchase agreement.
  
  Tom[ Edited by tbelknap on Date 01/07/2004 ]

• 
  bacardidark31327th January, 2004

  [ Edited by bacardidark313 on Date 01/30/2004 ]

• 
  tbelknap29th January, 2004

  My assignment contract must be different than bacard's.
  
  My assignment reflects 5k.
  
  The purchasee price of the house is on my Purchase Agreement.
  
  Which will state 5k.
  
  Since I assign my rights to the contract to my buyer that they will step into my shoes on the purchase agreement.
  
  No need to put 10k on my assignment.
  
  Now if I double closed then I would do a purchase and sale agreement with my buyer for 10k.
  
  
  Tom