Maximum profit attainable on assignment contracts

[Account Closed]

Can anyone tell me how much money can you get using assignment contract like is there a maximum amount or is that solely dependent on the when you neogiate the deal

[Geordy Rostad]

@Account Closed

It's solely dependent on how you negotiate the deal. There is no cap really but you should try to be fair. Especially when you are starting out.

You need to work backwards in most cases starting with ARV, then subtract the estimated fixup costs, then a reasonable profit for the investor, finally a minimum profit you're willing to make such as $5k. That should get you to your maximum allowable offer (MAO). Once you have that, it's up to you to negotiate any extra spread you think you could add in and have it still be a great deal for the investor.