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Thank you for the replies everyone. Are you all flipping to cash buyers or jumping through hoops and flipping to an investor with finance? From what I understand most lenders will not finance a transaction which includes an assignment fee/spread created via a flip.
Can this problem be avoided through the use of an option and then charging the end purchaser a separate assignment fee (which is not included in the sale price on the contract of sale)?
I have also read that it is possible to register a caveat on the property once I have signed my option with the seller. Once I have found an investor to purchase the property I assign the option at a higher price, and then charge the seller the spread I have created in return for removing the caveat so that the transaction can go ahead. This seems like a better strategy given that the end buyer will be unaware of the price I obtained the property for.
Are these two strategies feasible for allowing me to flip a property to an end buyer who requires finance to purchase the property? It might just be my inexperience but it seems unlikely (to me) that there are large numbers of investors who are actively purchasing properties for cash that I can flip deals to.
Thanks,
Dan
