Receiving Assignment Fee

[E. Jacobs]

Can someone please explain how exactly the fee is received? Does it go on the hud closing form? Can you collect it upfront? When you sign the assignment of contract, do you give the investor a copy of the purchase contract and keep one for yourself? Thanks

[Jesse Ramirez]

The fee may be received up-front or after closing. It all depends on what you negotiate and prefer. Most investors prefer it being paid out after closing and for it to show up on the hud.
Personally I've done it both ways. The problem with waiting for your money until after is that you're at the mercy of the investor. What if he or she doesn't close? To counter this you can make the fee non-refundable and ask that it be deposited in escrow immediately.
And yes keeping a copy for yourself is something that always should be done.Someday you might run into a deadbeat who messes with the contract after its been executed. So keeping a copy is a good safety net.

Jesse