cash buyer question
Am I understanding the 'cash buyer' thing correctly? If I have cash buyers lined up and I find a property like I am describing for flipping. Does that mean that he can close and fund the deal at closing and HE is the one to THEN sell the property? In other words, I would get my assignment fee..cash (the difference) at closing and not have to wait for it to sell to an end buyer, Right? Please help me make sure cash buyers are cash buyers like I understand them to be!! I would get my cash at closing and not have to wait for the investor to sell it, right? Thanks...Bonnie
[ Edited by Bonnie on Date 05/31/2002 ]
Bonnie,
Your post is kind of confusing. If you have an end buyer lined up, take property to closing and assign contract for a price.
Most contracts are assignable unless otherwise stipulated. You'll know that you are dealing with a sophisticated seller if it states that the contract is not assignible.
What you should get in the habit of doing is purchasing property under a trust or llc and then transfer your ownership of either a Land Trust or LLC to another buyer for a fee.
good luck,
[addsig]
I read somewhere that you could also get a property under contract, find a buyer and just drop your contract and have the new buyer take over......for a fee of course...a benefit of this would be less paperwork..
Hey way_Mo,
Cool name first of all. I would believe that the contract would stipulate that the contract between the you and the seller has a clause that can void out this contract if the end buyer comes up with a contract that exceeds the amount originally agreed to.
Otherwise, a contract can only be viodable if existing contingency clauses have been violated, or that both parties agree to the vioding of that contract.
If I am a seller, I wouldn't want my contract to voided just because you found another buyer. You have to perform what is called a double closing or simultaneous closing where you close with the original seller, and then simultaneously as you take title, turn and sell to the end buyer and reconvey title to him.
There are title and escrow companies who will not do this because of a widespread complaint that investors are ripping people off. So you would need to find either a small title/escrow company who is open to Simultaneous closes or a new one.
good luck,
[addsig]
Thanks for the compliment and thanks even more for the information .... love this board