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Updated over 6 years ago on . Most recent reply

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Carlyn Dodson
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Assignment fee paid outside of closing?

Carlyn Dodson
Posted

Anyone wholesaling in Colorado, can you tell me what you know? I was recently asked if an assignment fee can be paid outside of a closing, where as the contract assignment would show assignment fee of $0,  but a separate contract between wholesaler and buyer existed on the side labeled a "finder's fee". What's the law on that? and is there a benefit to the buyer tax-wise if it is legal? I don't know anyone who has done a deal this way, and was caught off guard when asked. 

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Antoine Martel
  • Rental Property Investor
  • Miami, FL
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Antoine Martel
  • Rental Property Investor
  • Miami, FL
Replied

I wouldn't do this. I would tie your assignment fee to the deal and make sure it is paid at closing.

I think that if you try to go around that then it just opens up many doors for people to screw you over and not pay you that assignment fee.

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