Suggestions on how to hide my wholesale fee

[Jeffrey Carusotto]

I have a deal the property is uc for 600,000 I have a buyer for 650,000 I know 50k is a lot to swallow for some buyers if I double close after my realty transfer tax and my flash funding costs and expenses I am looking at 18k in costs. I am thinking about just assigning. I wanted to know if anyone had a creative way to conceal what I was making until the buyer  puts down the 50k non refundable. The seller has 30k as a deposit from me  and I am only liable for the deposit so if the buyer gets mad about the 50k I am OK. So anyone have an idea on how to keep what I am making a secret until the assignment is signed with his deposit in my account? One investor said he will have the buyer sign a separate contract as if we are double closing and then after the deposit is made just suggest they do an assignment instead.  That way his deposit is tied up.  Only problem I see is that  he might try and ask for a reduction in price knowing the cost of a double close. Any ideas would be great

[Jeff Rabinowitz]

It shouldn't make any difference to a buyer what a wholesaler is earning. The buyer should only buy if the deal is a good one for them. If it is not, pass. I recently paid a $45K assignment fee on a $150K purchase. It was right in the open. That was far higher than I have ever paid before but I thought the deal was a good one for me. I flipped the deal 45 days later (that was not the original plan) and all I did was pull a couple dumpsters full of trash out of the house. (I estimate there were at least 10 more dumpsters left--it was a hoarder house.) I made $30K. I guess I was right that it was a good deal. I will be happy to pay that kind of wholesaling fee again for a another deal like that.

In answer to the OP question. You can use 3 documents. The first is your purchase agreement for the property--your agreement with the seller and yourself. The second is your purchase agreement for the assignment--this is your agreement with the end buyer. When they pay your assignment fee you then execute the actual assignment agreement.

I am an advocate of openness and would rather work with people who disclose what they are doing. I find it easier to find people to do multiple deals with that way but as I know (and can see in this thread) there are too many people in this business who pay too much attention to what the other guy is earning and not enough attention to their own business.