Assignment fee and assignment contract

[Matthew Santillanes]

Hi,

I just got off the phone with Fidelity title here in Albuquerque, NM.  I asked them some advice on how a real estate wholesaler (something she's never heard of in 30 years) sets up an assignment fee on the assignment contract.  

The lady at Fidelity said that I can write and or assigns on the P&S but I cannot have a higher price on the Assignment Contract. So how do I get paid? Where is my assignment fee put in? Can somebody lay this out for me as if I was a child? Please

Thanks,

Matt

[Brandon Kargol]

Originally posted by @Matthew Santillanes:

Hi,

I just got off the phone with Fidelity title here in Albuquerque, NM.  I asked them some advice on how a real estate wholesaler (something she's never heard of in 30 years) sets up an assignment fee on the assignment contract.  

The lady at Fidelity said that I can write and or assigns on the P&S but I cannot have a higher price on the Assignment Contract. So how do I get paid? Where is my assignment fee put in? Can somebody lay this out for me as if I was a child? Please

Thanks,

Matt

Okay this is an easy one! First, it's not uncommon for title companies to be unfamilar with wholesaling. Many realtors don't even know what it is! Next, if you are doing an assignment of your contract then your title company is correct. You sale price on your assignment contract will be indentical to the sale price on the contract between you and the seller. So where is your profit?! All assignment contracts have a seperate block where your write in your fee for assigning the contract. Say you have a house under contract for $50,000 and you have an end buyer you are assigning it to. Your assignment contract will have the sale price of $50,000 plus (in a seperate line) your assignment fee of say $10,000. So your end buyer is going to need to bring $60,000 to escrow 50K or which goes to purchase the property and then 10k of which goes to your pocket minus closing fees. Make sense?