Need Help With A Double Closing
I have an option and the buyer and seller have to close.
Do I close with Buyer first? Then I give him a Deed and sign all docs without actually owning the property I am now deeding away? THIS IS DIFFERENT THAN SIGNING A CONTRACT YOU INTEND TO ASSIGN.
Certainly Cant close with the Seller first because I dont have the money at all yet?
Am I missing something?
Close with the seller for the price that you agreed upon. Then close with your
buyer for the price you agreed to sell him the property for! Or have the buyer close
with the seller and have the seller agree
to pay a "repair bill" or commission to
you thru escrow for the difference. You have to be creative if you want to go
this way.
Jeff Adam
[addsig]
The following is a post that is from the Lease Option forum:
The title company will handle the transaction and shoud go like this....
1) the seller deeds to the property to you which is not delivered but goes into escrow.
2) You deed the property to the new buyer and it goes into escrow.
3) the closing agent delivers the funds from the new buyer to the original owner and the difference goes to you. You brought no money to the table.
4) both deeds are recorded back to back in public record
Hope this helps. You can also put "Double Closing" into the forum search and you will get lots of posts on the subject.
Cruz
Thanks for your replies.
But it seems that both of you are replying as if the seller knows about the assignment.
IN THIS CASE HE DOES.
But what most gurus discuss is a wholesale without the seller necessarily knowing about the true buyer.
So how do I get him to put a deed in escrow and I know the Title agent isn't gonna pay seller before the buyer comes up with certified funds.
So how is it done when the seller has no knowledge of a double closing?
N.
Once you and the seller come to a meeting of the minds and you have everything signed before going to closing. It doesn't matter if they know about you selling it to someone else for more money or not. They got what they want. Once you are at the closing table with the seller, you can tell him about you selling for more money. You don't have to disclose it if you don't want. I think you are worried too much about what people are going to think if you make money. You should be fine with them knowing or not.
thanks Nebuloused,
It is true I dont want to upset the seller by making a quick profit. He might get an idea that he can get a better price himself.
BUT MY REAL QUESTION is about the order of operations.
How could I possibly close with a seller when I dont have the funds from the buyer yet?
It's done all the time....you just need to find a title company that will do it. The title company can tell you how they do things.
Here are your solutions:
#1- Open up escrow as an "assignment"
and once the seller signs the instructions, tell him you are closing it in
your partners name for tax reasons. Then
have the person you are selling it to give you a check for your fee and let them close it.
#2- Close it with a hard money loan and then grant deed the property to your buyer and have him assume loan.
#3. Close the deal all cash and then sell it to your buyer or carry the paper at 12%
and with 3 pts. Make even more money.
I have wholesaled over 200 houses and either I assign my escrow to my buyer and explain to the seller I am closing it in my partners name for tax reasons. They dont care, they just want their money. I
also sometimes close it all cash and let the buyer arrange financing, or some of
my buyers use hard money, so I just simply put a hard money loan with 100%
financing and a repair escrow and let
them assume.
Good Luck
Jeffrey Adam
[addsig]
I just closed on a deal like this for an investor friend. The buyer got a mortgage, the option was paid to my friend on the HUD-1, the sellers were paid the rest. You need to talk to the person who is doing the loan for the buyer and they can put your money on the hud. The seller can pay anyone or any debt with the proceeds of the loan, and request it to be put on the HUD.