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Finder fee and assignment of contract are basically 2 categories of wholesaling. A licensed agent cannot pay a non licensed person a finders fee. An assignment of contract is when the buyer is buying the property with the intention of selling it to another buyer usually at a higher price prior to the transfer of title. The original buyer is still responsible if the assignee does not perform.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Lyn Sims
Schaumburg, IL
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Paul Savola Real Estat...
Killeen, TX
634,582
Those are two different animals, Paul. Finder's fees were common long before I started in real estate but are mostly illegal now. Any fee can only be paid to a licensed professional now. Assignment of contract is still done regularly and is not only for wholesaling though it is rarely done in other circumstances. Richard Weeks' definition of it is correct. I've been involve in many of these, mostly used by investors who are quickly flipping properties.
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Fred Griffin Florida R...
Tallahassee, FL
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Paul Savola Real Estat...
Killeen, TX
2,875,154
For the one counting the money after they left the bank? No difference lol
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Richard Alan Naggar
Riverside, CA
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Paul Savola Real Estat...
Killeen, TX
5,397,606
Is this a trick question? In 25 years in real estate have never dealt with either.
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Fred Griffin Florida R...
Tallahassee, FL
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Paul Savola Real Estat...
Killeen, TX
2,443,346
3,988,144
My investor clients use both of these techniques. The finder fee is use to pass on a solid lead or property that is not under contract yet. The fee is usually much smaller than the assignement fee. The assignment contract means the it is under contract and the deal is done but the investor can inflate the price, take a fee and pass on the contract. in some situations the finder fee term may be used in both cases.
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Paul Savola Real Estat...
Killeen, TX
5,206,187
I wasn't sure about assignment contract (not something I have even been involved with), but it was helpful to read this. I would defer to Richard Weeks
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Paul Savola Real Estat...
Killeen, TX
1,157,847
1,231,903
Se Richard Weeks answer. He is right on!
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Paul Savola Real Estat...
Killeen, TX
1,466,257
Paul Savola Real Estate SEO The biggest difference is that it is illegal to pay bird dog or finder's fees to an unlicensed person.
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Paul Savola Real Estat...
Killeen, TX
1,875,818
3,986,529
A finders fee is like a referral fee.
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Paul Savola Real Estat...
Killeen, TX
5,585,039
I can remember when local banks would pay a finders fee for sending mortgage customers to them after a deal went together....and that was just ending as I began my real estate career!!
an assignment contract? that must be a referral directed to a specific agent with a negotiated fee? I've not heard that teram "assignment contract"..... finders fee was always on a hand shake....the good old days....
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Paul Savola Real Estat...
Killeen, TX
6,775,772
1,547,124
8,246,323
4,434,277
3,074,766
2,719,273
Two different things.
I can assign you my contract (although I may still bear ultimate responsibilty, depending upon how the contract is worded). You take it to Closing, you become the Buyer/Owner.
Finder's Fees aka Bird Dog Fees are illegal in almost every state, except to licensed Real Estate Brokers.
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