Assignment (classic wholesale)
You put the house under contract, then sell your right to buy it to a cash buyer for an assignment fee. You never take title.
Why it fits Grand Rapids
- Cash buyers are active here, so assigned contracts find takers.
- Homes sell in about 8 days, so buyers decide quickly.
How it works
Step by step
- Sign a purchase contract that lets you assign it (buyer named "your name and/or assigns"), with an inspection period long enough to find a buyer.
- Open escrow with a title company or attorney that closes assignments, and send them the contract on day one.
- Market the deal to your cash buyers; collect a non-refundable deposit from the buyer you pick.
- Sign an assignment agreement: the buyer steps into your contract and pays your fee at closing.
- The buyer closes with the seller; your fee shows on the settlement statement.
What you need
- A contract that allows assignment
- A closer that accepts assignments (see the list on this page)
- A buyers list and proof of funds from your buyer
Costs
Lowest-cost exit: one closing, paid by the buyer. Your fee is visible to the seller and the buyer.
Watch out for
- Some states require written disclosure or a license to assign (see the state rules on this page).
- A large visible fee can upset a seller or buyer at the table; a double close keeps it private.
- FHA / bank-owned and some short-sale contracts can't be assigned.
