FLIPPING PRE-FORECLOSED HOMES
HOW DO I WRITE THE CONTRACT IF I WANT TO BUY FOR $ 84k, MAKE IMPROVEMENTS OF $6K, AND FLIP FOR A PROFIT OF $ 5K WITH CLOSING WITHIN 45 DAYS (I HAVE INVESTORS, AND ONLY DO 1 CLOSING (IF POSSIBLE)? tHANK YOU! UNCLE DON <IMG SRC="images/forum/smilies/icon_confused.gif"> [ Edited by uncledon on Date 03/21/2003 ]
UD:
Hard to tell exactly what you are trying to do from your post. But, I think you intend to buy and then flip to a wholesale investor within 45 days after acquiring the property.
Your contract with the owner/seller should state the price you are willing to pay which equals the wholesale price your investor will pay minus your $5k profit. This contract should also state the buyer is "Uncle Don and or assigns".
You can then assign this contract to the investor for a fee of $5k. You're out of the deal with $5K in your pocket and it's up to your invetor to close with the seller.
Hope this answers your question.
Newbie question: What is the retail investor doesn't close? Do we owe him back his $5k? What if we do a double closing, and the retailer cannot close? Thanks, Tim
Well what I think you can and should do is to include in the contract with the investor stating that he has to pay the amount of (5k) if he close with the seller or not, that way you will profit no matter if the deal go through or not between the investor you flip to and the seller.