Double closing vs assignment contract

[Jonathan Rivera]

Hey guys I want to know which one is better to do when it comes to (Double closing vs assignment contract)..

Should I use both of them differently when it comes to the price of how much I’m making on my fee?

Should I only use double closing so this way the cash buyer and seller don’t know exactly what I am making so it doesn’t make things difficult?

Should I use a assignment contract when my fee is lower than ex: ($5,000) which is a low fee so seller and cash buyer won’t go crazy with what I’m making?

Let me know what you think? Thank you !

[Will Barnard]

As Joel stated, you answered your own question as far as wholesale fee price points, but then again, if you have a $40k fee and the deal is still a deal for the buyer, then why should they care what you make?

Now on to what is really important: to assign or double close to make sure you are staying within the legal limits of your transaction! In many states, negotiating a contract to purchase a property, marketing that property/contract publicly, locating a buyer, and getting paid a fee for said services constitutes brokering and without an active real estate license, you will have then brokered without a license which can be punishable by fines, jail, and/or restitution. So the important question you should be asking is, how do I complete a wholesale transaction legally in my state? Closing on the deal and then marketing for sale to another is perfectly legal without a license in all states. Finding a buyer upfront, making offers in a newly formed entity in which you name your buyer as a share holder in the company then sell your shares/interest in the company for your "wholesale fee" is also legal in all 50 states and no assignment is needed as the buyer is you and your end cash buyer/partner. Same can be accomplished with a trust in place of an entity.

Wholesaling is not illegal, however, many wholesalers do their transactions illegally and often immorally so it is important to separate yourself from the bad by staying within the legal limits, make sure you have ability and intention to close, and disclose, disclose, disclose.