Need Enlignment About Double Closing
I am trying to understand and piece together a plan to profit 2 wholesaler (with assignments) working with a double closing and no cash from the wholesalers; and at the same time working with a buyer that will buy the property using a mortgage company financing.
My questions are as follow:
1)How does a double closing works when there are a seller, 2 wholesellers and a buyer?
2)Will the property be owned by each wholesellers as the double closing is produced?
3)Do I need to put money down for closing costs, etc?
4)Will there be common restrictions placed by mortgage company on payments done to wholesellers and original seller?
5)Can we add a note on the property, as an option to payment of assignment.
I will appreciate any help provided on the subject.
Thank you very much for your help and time.
Orlando –
:-?
Junior:
Forget about the double closing!
Simply have the wholesaler open up
escrow as an "Assignment." Then the
wholesaler simply collects his fee and
"Assigns" the escrow to the new buyer.
Done deal!
The new buyer is responsible for all closing cost associated with the transaction. This is the easiest way to accomplish what you are doing.
If you are using hard-money or a private investor it is possible to have the new buyer assume financing as long as they have decent credit and you run it by the lender.
You can indeed put a note on the property for payment. Lets say the wholesale fee is $20k, the wholesaler can collect 3-4K upfront, have a 2nd drawn up and get paid on the back end with interest!
Best Riches,
Jeffrey Adam
_________________
"The only place success comes before work
is in the dictionary."[ Edited by JeffreyAdam on Date 05/18/2004 ]