QUESTION:
If I am doing an LOA find another t/b and splitting the option consideration with the seller (assign my option back to seller,) does it matter if I get the property under contract at FMV since I am splitting the option consideration with the seller?

Example:

Asking price: $100,000.00
FMV: $100,000.00
Payments:$1200/month
Option consideration: (to be split with seller): $5000
ANSWER:
The amount of the sale price is irrelevant to your assignment fee. Just remember that your assignment fee (tenant/buyer’s consideration) will be coming off the sales price regardless.
Adam
RESPONSE:
So, I can profit from no equity deals by doing an LOA (tenant buyer being the end user)?
ADAM RESPONSE:
Absolutely and that’s the point.
Most homes are completely over leveraged. So, a seller could always sell a property for full market value with a few grand down, which could be your assignment fee. Then, when it comes to close and there’s a difference, the seller can come out of pocket at closing to take care of their own loan.
So yes, it can work in that regard too.
Adam