Can I Get Away With This And Is It Legal
I have a seller who is wiling to sell me a house for 120K....I have a buyer who is actually waiting on a house I am rehabbing and we agreed upon a price of 150K. Can I have the buyer, put the house for 120K on a contract for 150K and at closing walk away with 30K or whatever the price will be because of closing cost. Or should I put the seller's house under contract for 120K and flip it to the buyer for 150K.
Well let's think about this for a second. If you have the buyer put the sellers house under contract directly how are you going to ensure you get the $30K?
Usually contracts are written on specific properties, are you saying the Buyer is willing to switch his contract from your rehab house to this new house?
If you want to make some money on this you can put the house under contract from the seller and then put it under contract with you and the Buyer and you get the difference. You will end up paying almost double closing costs though as you will have to close one then the other. If you have a good closing company you may be able to get them to whittle the costs down for you quite a bit and make it more reasonable.
Thanks for getting back to me. The buyer is willing to switch contracts because the place the seller is selling is done, no rehab needed. I do not mind paying the extra closing cost because I won't have to do much. The property that is being rehabbed should appraise higher than what I am going to sell it. So I just have to wait for another buyer. I will take your advice and put the seller's house under contract and then flip it to the buyer.