What Do We Pay When Assigning A Contract?
I'm a little hazy on how this works, and just wanted a little expert advice.
I purchased a place with a standard FAR-4 contract, and indicated on there that it was "assignable". I also added an addendum (which was a good idea at the time) which supercedes the financing requirements and gives me an out if the appraisal doesn't meet or exceed the asking price.
While I had hoped to buy it, we decided it would be better to assign it and "flip".
Now if we flip it, is there any way to get rid of my addendum, or to require that the buyer put down a certain percentage? ie 10%. (it's still right around FMV, but this area is hot, and selling for over FMV almost always) Even so, what we're asking is still in line with the rest of society here.
If I'm assigning it, do I need to have title work done? Do I actually take possession? Would I have to pay doc stamps at a "simultaneous close"?
My question is how far into the process do I need to go if it's not going to be mine? Do I still have to get the mortgage, appraisal, etc. ?
Writebrain:
Simply collect your fee from your wholesale buyer and then 'assign' it..
No big deal!
Best Riches,
Jeff Adam
[addsig]
Put an inspection period in there with right to cancel if you dont assign it. Make sure hte investor gives you your assignment before the inspection period is over.