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Updated over 6 years ago on . Most recent reply

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28
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Naqi Taylor
  • Investor
  • Brooklyn, NY
12
Votes |
28
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How much is too much for an assignment fee

Naqi Taylor
  • Investor
  • Brooklyn, NY
Posted
Just want some opinions about at what point is an assignment fee to high and should you double close. I understand that you can include the assignment fee in the principle price in a contract but when can a profitable buy high assignment fee be a problem for a seller or end buyer?

Most Popular Reply

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Hattie Dizmond
  • Investor
  • Dallas, TX
1,810
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Hattie Dizmond
  • Investor
  • Dallas, TX
Replied

As long as there is space for your investor to make their profit, your assignment fee is fine.  Everyone wants to make as much as possible.  However, no reasonable/serious investor is going to begrudge you your profit.  And, yes, you can do a double close - if it's legal in your state - and bake it in.  However, it will be disclosed in the closing details, so don't think you're hiding anything.  Just be upfront with you investors, don't squeeze them and find good deals.  Personally, if you brought me a deal that met my criteria, after your assignment fee was baked in, I wouldn't care if your assignment fee was $50k.  The fact is, you left enough meat on the bone for me to get my profit. 

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