Negotiating the Deal for an Assignment
We assign deals for a fee there are several types of deals that we assign for fee.
- Wholesale deal, house that needs work, we need to figure out a price that we can assign the paperwork for a fee,
- But generally wholesaling deals are 65% of the after repair value minus repairs minus our fee, so if the after repair value is $100,000, and the repairs $10,000, and our fee is $5,000, the math is $65,000 – $10,000 – $5,000 = or $50,000 is our sales price to the seller so that we can assign that paperwork for a $5,000 fee.
- Lease option assignment deal or land contract assignment deal
- it’s a pretty house that needs no work, and we generally assign that paperwork for 3% to 5% of the value of the house.
- So when you negotiate with the seller you need to have terms that make sense for both the lease option assignment and the land contract assignment.