All Forum Posts by: Christopher P.

I just watched a interesting documentary last night called "Were not broke". And I gotta say, I'm impressed of these huge corporations such as Google, Apple, Verizon, etc. were able to avoid paying federal income tax. Some of them were taxed negative, WTF?!. I didn't care much about the people's protest but amazed how these corporations have billions of dollars stashed away free of tax in a little island. Top of that the Government knew about it and I'm assuming they don't want to bother because of the treatment(free vacation, phone service, private jet, yacht cruise, and money of course) they have been receiving by these corporations...lol...crazy.

Has anyone incorporated their real estate business off-shore at a 'tax haven' island to get around the US taxation?

That documentary was filmed a years ago. I don't know if the laws have changed since due to millions of angry protestants worldwide

Has anyone wholesale an auction property?

OR maybe he could just pass it on to an experienced investor for a finder's fee.

Thanks for the adventurous story you got there Barrington. I see a few techniques and strategies you've been using. I wish could do the same such as that last paragraph you mentioned. Unable to do so with bad credit and not enough funding to get a least a FHA loan. That's why the subject was based on assignment fee to know more about it and how much I can profit, so I can build capital enough to purchase and rehab properties. Wholesaling is a jump-start for me because there's less money involve out your own pocket and I find that assigning the contract to the end buyer is a lot easier and faster than a double-closing because there's no hassle of finding transational-funding who charges a high fee up-front. But I know for a fact it wouldn't matter after flipping your first deal. Then I could perform a bact-to-back. So my goal here is to flip my very first deal EVER by assigning the contract for a fee of $15-30k. Why so high? Well, Hawaii market is one of the top 5 expensive state in the U.S. Our properties here averages from $330,000-675,000 and the square footage is not even close to what other states have.

Thanks Josh,

What you're saying is true, but I would rather be up-front about it so the end buyer doesn't back down when he/she finds out at closing the amount of fee is payed towards me or maybe they'll won't mind. Double closing sounds like another strategy for big numbers.

Have you done it without letting the end buyer know what you're getting doing a double transaction at closing? If so, did he/she back down from the deal?

Thanks

Hey Carolina,

The repair cost would range from $30-50k. Yeah, I got the picture after tons of research last night when I didn't get a response yet. Found out that the assignment fee can be unlimited if the end buyer agrees and is getting a significant profit he/she had in mind based on ARV. It's also a easy and quick process than a double closing without having to look for transactional funding. My only risk of losing the deal if I don't disclose the information to both sides, and if the end buyer see's that the fee is too high even though he/she knows they will make a lot of money. They'll probably try to go around my back and cut the middleman(me) out of the deal with the seller. Sad but true. Which is important to record the contract. Now my next question to you/others...

Do you record the PSA before or after you assign the contract?

Thanks for your response

Link: http://www.purchasing.cmich.edu/ptyacquisition/pdfs/sample-agreementtopurchaserealestate.pdf

I Google for an 'assignment of contract' all the examples didn't state the price of purchase or assigning fee. So I type in purchase of contract instead and got the link above that shows details of purchase price and so forth except the assigning.

Could I edit the contract and use it for an assignment fee?

[b]Seller asking for $175,000(firm), market value is $230,000 and ARV is $330,000 minimum. The end buyer is a investor looking to close all CASH and will pay for closing cost. Both sides will be aware of the assignment fee and the profit margin.

[/i]-If the investor decides to fix&flip, can the assignment fee be as much as $15-30k without performing a double closing? which process would be easier when it comes to big numbers?

I just read a blog before posting this about some dude who made $15k a flip on assignment contract NOT double closing. But most the forums on here are saying to double close instead when it comes to big numbers. However, I do know that some lenders will not lend to buyer to pay the assign fee, which we'll have to perform a double close in that case? but I did mention it will be a CASH buyer.

If you're giving me an answer that the assignment fee are limited and double closing is the way to perform such a deal, Why?

What's the most you made on assignment fee?

Thanks

Thanks Danny,

What you just said, really build my confidence to finance with FHA. This is the answer I was looking for. It's all about Intent which really makes a lot of sense and it's honest.

Thanks again

Thanks,

Just what I needed to know.