Hello all I recently closed on a house where I got a greal deal house is worth 480k I got the house at 340k and Currently selling it for 390k closing is in a couple weeks..The real quesion here is the guy who I bought the house from did a assignment he never owned the house, and at the table there was the seller, him (assignor), and me(buyer/assignee). After a couple weeks I called him we did a little chitchatting, and he made 140k on an assignment fee all legal. He basically told me he offered a seller 200k for it he agreed, and found a buyer (me). Im currently in the same situation Im finding deals left and right and I want to do assignments making that much money. However why is it when I search online people only charge a 5k-10k assignment fee when there is anywhere from 70k and above to be made on these types of deals? As long as the Assignee is happy with how ever much potential equity is in house and the assignor is oviously happy cause he never owned a house just was the middle man and made massive prophits. Can anybody clarify this for me, or give me some tips/pointers?

Not sure Im understanding your question.... You can make fees like that if you consistently find suckers who want to sell you their home at 40% of value, and owe very little on these homes. Truth is, investors are getting careful and Sellers want top dollar, or they owe too much. In current market conditions, you would probably be lucky to make 5K a deal on a consistent basis, dealing with average priced homes.

When you bought the house was it contingent upon final bank approval or acceptance??

well when I bought the house im sure they allowed assignments becuase the guy who I bought it from never owned the house he just organized it all. I was happy with the price I got it for and he was happy cause of the money he made...

When you say find the suckers, you mean this deal that i have going worth 400k and ima get it for 137k and wholesale it to somone else for 220k the guy im getting this from is a bank so Im sure some "sucker" messed up his payments and only owed bank 137k and I got my hands on it first. In those cases you can make that type of money 70k+...anyone disagree?

I'm going to guess here that you don't have a professional license (like real estate license) so you don't have any ethical issues with this type of windfall profit.
Anyone with a real estate license would recommend that the homeowner list and sell the house for market value, pay off the mortgage and other leins and keep the profits.

PA----- not everyone with a license with a license would do that, but they all SHOULD do it
Eclipse----way to go, if the bank is selling you a 400K property for $137K, thats some great negotiating, or luck. So why dont you buy it and sell it to an end user for $350?

REO---The philosophy that I have learned is make a little money off alot of properties rather then off one. The stress to sell a property at value takes months even years. To sell a home to an investor would take days or weeks. I want money to work for me not work for money..Reo the real question here is whether or not a assignment fee of 78k is legal. Im sure it is I read up so much stuff but im still not convinced.

It is legal

Let me ask you another question Reo...Instead of assignment fee...If I know a owner of a property in a pre-foreclosed status, gave them a offer say for example 200k...I gave them the offer but then I found somone else to 280k...Do I need an assignment form, or does my buyer just need to get qualified and then close the loan. basically what im saying is Im not getting properties from bank im getting it from a actual owner who is in pre-foreclosed status. If I sign a contract with pre-foreclosed person for 200k then what do I do after... Make a contract on the property for 280k? then at the closing I just put them at different sides and underneath on the hud statement title company will put 80k as misc fee's? which would go to the realor, and then the realtor would cut me a check as a consulting fee? or how does that work?...

Nevermind...who cares?

what do you mean who cares it doesn't matter? what does not matter, how I get that 80k?...All I gotta do is just pay taxes on it and im good?

Well what I said was I'd never work with you. Not for one minute. Happy? In my opinion you are taking advantage of people in an already stressful situation and they are under duress.

It's legal to pocket the difference between what you buy for and what you sell for but what you are describing here would probably be considered the illegal practice of real estate without a license in many states. You're trying to get around it by calling it a "consulting fee" but what you are actually doing is trying to broker properties for a commission and the law isn't fooled by ruses like that.

That too.

Alternatively if you had simultaneous closings it would be a flipping scheme. Tsk, tsk, tsk.