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Updated over 10 years ago on . Most recent reply
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Wholesale Assignment - Separate from House Price or Bundled into Asking Price?
I have a question about wholesale arrangements. I have been starting out with fix/flips (foreclosures / short sales) and am starting to branch out into wholesaling. I have a seller interested in signing an agreement with me to wholesale her property and am wondering how to market the said property to my buyers. The two options I am considering:
1. Bake the assignment fee into the price I advertise the house for (e.g. I have a contract to Buy or Assign a house for $100,000. I then market the house for $110,000 to my buyers. They never know that I have a $10,000 assignment fee until closing).
2. Market the house for $100,000 to my buyers list along with a $10,000 assignment fee. The buyers understand that they are buying the place for $100,000 along with the assignment fee I am charging. There are no surprises, although certainly the buyers could attempt to circumvent or negotiate my assignment fee down once they are aware of it.
Does anyone have any experience / opinions with either option? Are there others I should consider?