$200,000 assignment fee (Possible?)

[Tosin O.]

I'm in the process of negotiating a contract for a $12,000,000 apartment building and I want to assign it for a $200,000 fee because the margins are high and the building is cashflowing $80,000 a month. 

My end buyer is a property management company. I'm wondering if any of you have done this before or participated in the process and if so did you still get objections from the buyer even though they would still get a steal of deal even with that fee plopped on top? 

[Bryan Blankenship]

As Peter said above, I would most certainly hide a fee of that size on a blind HUD and do a double close.

However transaction funding won't easily be available for that size.  If you can find it at all, it will eat heavily into your profits.  

If the deal is great, your fee is certainly fair.  I'd happily pay $40K for a great $2.4MM building here in Ohio, so the numbers work out fine multiplying by 5x.  I've paid out $20K+ on folks bringing me buyers on $600K commercial deals, so the numbers are all relative.  

If you're left with no other option than to let the buyer in on it and can't do a double close due to funding constraints, I'd have an attorney draft a great fee agreement and not risk doing it yourself.  

Awesome deal, congrats if it works out!