Avoiding Closing Costs
In a simulataneous close. How do I end up with the most money?
If I have a property under contract for $30k and I'm selling it for $33k. How do I leave the table with $3k or very close to it?
The title company I am talking to said the closing costs come to $5.25 per $100. Now I need to find out if they're charging me for 2 closings. I'm just confused as to how the closing costs will work out and how I am going to walk away with the most money I can out of the deal.
I would like to pay my sellers closing costs and have my buyer pay all his closing costs.
Is it possible to make my buyer pay for ALL closing costs for the entire simultaneous close?
I want to pay as little as possible. How does this usually work for you guys?
JB[ Edited by jbinvestor on Date 06/25/2004 ]
For that kind of spread, you're better off just assigning for 3k. It's better than trying to squeeze a few extra dimes out of the deal.
If you insist on doing a double, split the cost with your seller and insist that for the steal of a price the buyer's getting, he pays closing costs for his transaction. No one in their right mind would pay for someone else's close unless their spread was enormous.[ Edited by HOLLERatG on Date 06/26/2004 ]
Bottom line is that double closing means double closing costs. For this small amount just get an assignment fee.
I agree, you need to assign it and leave the deal with your $3K.
BTW, I think you need clarification from the title/ escrow company or attorney that is going to handle your closings. You don't want to be unclear on your closing costs when you're trying to put a deal together. Good Luck.
Dave
[addsig]
Hello guys,
I' m new so could somebody explain the difference between closing on a deal and assigning the contract? I thought both were the same thing. Who all have to show up at the closing if I assign a contract as opposed to doing a double closing or simutaneous closing.
Thanks in advance
Murphy
When you assign a purchase agreement, you "sell" the right to take your place in that purchase agreement for a price.
In this situation you would go to your buyers and tell them that they can buy the property $100,000 if they give you $3000. They were already going to buy it at $103,000 so not a big deal.
With a double closing the end buyer should not know what you paid for the property until later. It could be $3000 or $300,000
So if i have an Option to purchase someone' s home in say (45 days), and i find someone who I can assign the 100,000 home for 3000.
I would need to close on the option>assign to my end buyer for the money>then pay off the original owner with the money I recieve.
If so how do I handle closing cost?(Option contract with original owner) Also, what about the money to the original owner, if they want their money on the spot.
Murphy
[ Edited by Murphyj2000 on Date 06/27/2004 ]
[ Edited by Murphyj2000 on Date 06/27/2004 ][ Edited by Murphyj2000 on Date 06/27/2004 ]