Question about selling a property when doing a wholesale deal. My scenario is I have a seller who will almost give me the property if I pay her back taxes which are pretty extensive compared to the value of the property. I want to structure the deal so that the PA to the seller will list me as the buyer with a total purchase price of $100 (net to seller) + closing costs (back taxes, title company closing). I’m under the assumption the seller doesn’t see my assignment fee… Now on the assignment agreement, the end-buyer/investor will see my assignment fee, but the seller never sees the assignment agreement? So when marketing this property, would I put the price as the total of the purchase price + closing cost + assignment fee? If I put only the purchase price (as a total of the net to seller + closing costs), the end-buyer might walk away when they see my assignment fee.
@aerielandco from my experience, the transaction on the sellers side looks the same whether you or an assignee buys it, other than the buyers name on their closing statement. The end buyer (assignee) will see what you bought it for at the closing table, because their closing statement will show: the sale price (your negotiated price with the seller), the closing costs, back taxes, and your assignment fee (which is listed similar to a RE agents commission).
The assignee is actually paying all those closing costs and back taxes, not you, since they are replacing you as the buyer in your contract with the seller.
Regarding your assignee’s opinion of your sale price… as long as they feel they are getting a deal, they shouldn’t care what the sell price is compared to your assignment fee. If it wasn’t for you shaking the bushes, that opportunity for the end buyer may not have existed. And… if they don’t want it at the price you are offering, then someone else will. I felt guilt on my first assignment, but the assignee was happy with the price regardless. If they are buying for below market value, make sure they know that when presenting your assignment fee. If you buy an item on sale at a store, you know that store is still making profit… you deserve your profit too.