I’ve read that Dave Reynolds has assigned some contracts for parks in the past. I do not know how to do that and would like to (I bought 2 parks recently and have 2 under contract, but I only have the funds to close 1 of them, so the Florida park must go). Before anyone asks, it is in my purchase and sale agreement that I can assign it. My specific questions are:-How do you find someone to assign the contract to?-What is the typical consideration paid?-How is consideration paid? Is there an assignment fee plus some percentage at closing? Perhaps a percentage paid at closing, but half is cash at close and half I carry as a note? I do not know what is customary.Mathematically, it is a sensible deal and I assume somebody will want the contract. I would rather not just walk if I could get something out of it. Please advise if you have ever done one before.Regardshfairbanks, CFA
Payment for contracts ranges from 1% - 10%, but that assumes the contract has value:1. Is ‘in the money.’ If it’s not at a good price then there is no value/interest to anyone to purchase it2. You’ve done a lot of due diligence and have a diligence package the new buyer can start with and close quickly3. There is adequate time remaining on the contract. I once had someone try to sell me a contract with 72 hours remaining… That’s not very valuable. I can’t get my diligence done and capital arranged in 3 days.Feel free to send me what you’ve got. If it seems interesting, we’ll happily pay a referral fee if we close on it. Cash is paid at closing; we’d sign a biding agreement providing for your referral fee.Best,-Jefferson-