Need Help With Double Closing
Hi all,
I have three deals going right now where I want to bring in retail buyers who have bank financing. Two of these deals have buyers already, the other is a newly signed deal. I'm having trouble with the concept of bringing my buyer's lender's funds to the table to close the transaction with my seller. This seems like a basic creative deal, but things aren't flowing.
Two of these, Deal A and Deal B, are short sales. Deal C is a preforeclosure that goes to sale in September.
My buyer in Deal A went to Wells Fargo to get financing. After giving approval, the loan officer heard that this is going to be a double closing and said "no way!" Wells Fargo does not do foreclosure bailouts, Wells Fargo does not do double closings. Company policy, good luck getting an exception.
Buyer for Deal A is now with a mortgage broker who from the beginning has been fully aware of the nature of the deal. She swears she's found a lender (Countrywide) who will do a NINA (No Income, No Assets) loan (my buyer for Deal A is not A money) and all they care about is how the property appraises. The double closing won't be a problem.
Meanwhile, Deal B's buyer's mortgage broker said her lender can do a double closing, they'd just need a letter from me explaining who's who on title and explaining what my profit in the deal will be. This, of course, made me bristle, but the reasoning is the lender wants to make sure that they're not participating in a foreclosure bailout.
Now, this mortgage broker was told all about that this is a short sale, so she knew that. She told me that 10k would be deemed a reasonable investor profit. However, once she received the requested letter from me and showed it to her lender, they said no way, this was a foreclosure bailout and I was making too much money. (The letter said I am making 10k.) Okay. She said she shopped it around and no lender will touch it.
The buyer in Deal B is going to switch to buying for cash, so it's academic at this point.
I told the mortgage broker from Deal B about Deal A and she says Countrywide won't do a double closing, but Deal A mortgage broker swears it'll go through.
Deal C, the property that's in foreclosure, has a sale date in September, so I figure there's enough time to sell to a end-user with bank financing. (I'm a new investor and so need to maximize my cash at this point in my career.) My costs will be 137k, FMV is 180k. I can drop the price from that and sell it quickly and so have enough time for my buyer to get bank financing. The question is, can my buyer find a lender (with my help, of course)who doesn't mind a double closing?
Any body encountering this problem of having trouble closing a flip with a buyer's bank funds? Any thoughts?
Does anybody have a list of lenders who will do double closings easily? Conversely, is there a list of lenders who will not do double closings?
As you're well finding out, the 'textbook guru double closing' doesn't work quite as easy as they make it seem does it.
Actually this is something that you should've spoken about with your attorney or closing agent BEFORE making any offers on properties, especially if they're needing your end buyer's funds to close.
There are a number of problems with a double closing. First, the only legal way to do them is for you to have the funding to close your deal. You can't use the funds from the 2nd closing to fund the 1st closing (big oversight in the guru's textbook I'm sure). This shouldn't be a problem for you since you've negotiated a short sale. A SS package usually must include proof of funds before the lender will accept it.
Second, is the fact that your buyer will have to obtain a 'no seasoning' loan to close the 2nd deal (you haven't owned the property for 6-12 months). Most no seasoning loans have stricter requirements (more down, better credit) and sometimes higher interest rates. Neither is good for your buyer.
As you've found out, most banks will limit your profit (this is a safety net for the lender, to protect from the illegal 'flipping' techniques of the past). Usually, it is a max of 20% of what you paid for the property.
Double closings also require double closing costs, cutting into your profits.
Roger
Well, I don't know about checking with my attorney before making offers on properties. If I were the type to have all the lights green before I started out on a trip, I might never start out.
It's not that I didn't have an exit strategy for my short sales. My exit strategy is sell the thing, retail. I'm a beginner and I need the cash, not the cash flow. Sure, I'd love to sell wholesale, but I'm messing with skinny deals. How am I to know that my buyer's lender's good money can't be used to close a transaction that's, by the way, beneficial for all involved? (By asking my attorney, right? Well, I didn't expect to have trouble.)
Are you saying that double closings are illegal? But, I just did one not too long ago...
No, I haven't had to submit a proof of funds on any of my short sale deals. I've closed one, have two more ready to close and I've started numerous others.
Yes, you're right, I think I might be able to find lenders more willing to do the double closing thing when my buyer's credit is better.
Oh, my profit on the one where I'm told my profit is too big is only 6% of what I'm selling it for to my buyer. That 6% sounds familiar, where have I heard that figure before...
Double closing costs are less than the costs involved in borrowing the money to buy the house inbetween transactions!
Heidi
An investor/friend suggested to get a Power of Attorney signed by the seller of Deal C. Then have the seller sign a Partnership Agreement that specifies the seller's interest. This way, when the end buyer is found, one with bank financing, the closing will not be a double closing.
Does anyone have experience with this? Will this solve the problem?
Does anyone have a list of lenders that will not participate in double closings? Or ones that will?
Thanks for any input.
Well Heidi,
First, I said that check with the attorney before making an offer with a double closing involved. Make that attorney/closing agent since you'll want to know how they plan on actually performing the close. This is just simple planning. While I don't need all green lights, I do like to know where I'm going.
"didn't expect to have trouble'' - No body expects trouble, but by conferring with the closing agent and/or the mortgage broker first, before making an offer, and assuming (bad thing IMHO) that the retail buyer can fund your deal, you wouldn't have had trouble. Again planning.
I didn't say that double closings are illegal. I said that you must have separate funds to close each deal. I can only speak for my state, yours may be different, don't know.
"But, I just did one not too long ago..." - I've heard this more than I care. But like others you have jumped on board and made these claims, you fail to include details.
Like I said, most lenders require proof of funds. If you've done SS without them, I'd say you were lucky, or the lender was either desperate or stupid. Common sense here. If you were the lender, would you postpone foreclosure, add more attorney fees, and wait on a buyer that may or may not have the funds to close the deal?
Wouldn't let you have a 6% profit. Figure that was either a lender who just didn't want to do the deal, didn't understand it, or there's more to it than you telling.
"Double closing costs are less than the costs involved in borrowing the money to buy the house inbetween transactions!" - This woud depend on a lot of different factors. In short, could be less, could be more.
Now for leaddog's last question,
a POA could work. It does solve the double closing problem. Unless payments are now being made on the property, the fees would still be adding up while you find your buyer. Profit may not be as much as figured.
Roger
Thanks Roger for the advice. These deals are a challenge. As soon as one obstacle is overcome, another one pops up.
Any further thoughts about good companies/bad companies to try to do a double closing with?
Garry
Perhaps an option may work here. If you could obtain an option to purchase the property at a certain price, you could presumable then sell the option for the profit. This gets around the problem of having to have title to the property before selling it. As with most things, this is easier said than done. I just mention it as an alternative possibility.
Well, Garry, that's real estate, especially when dealing with conventional institutions. I haven't had a deal go smoothly yet. There is almost always a problem.
To successfully perform quick turn deals (don't like the term 'flips'), you'll need a good RE attorney/closing agent (depending on your state), and a mortgage broker with access to ''no seasoning'' loans.
The closing agent can best direct you on how to proceed to both buy and sell your properties, and the mortgage broker can get them financed, both for you and your end buyer.
There are almost always more than one way to solve a RE problem. With deal C, a POA could work, or a straight option as redheadcpa suggested.
If you could bring the deal current, you could buy 'subject to' the existing mortgage. If your mrtge broker will do an 80% no seasoning refi, have the seller deed you the property and refi for 80% of $180K (if it will appraise) or $144K.
good luck
Roger
Hi Roger,
I'm picking up that a lot of people who do short sales only do good-enough deals that can be sold to other investors for cash, thus avoiding the double close. Selling to a buyer who brings in bank financing is a little trickier, as I'm discovering. It would be easier to find a way to buy the house so that I can sell it to my buyer of choice at leisure. Live and learn. I might still need to do this in the end for Deal A. (But, I better figure that out before it gets to the end!)
I'm sorry, I misread your comments, I see that you didn't say that double closings are illegal. But, you are saying that the funds from the second deal can't legally close the first deal? Yes, maybe that's a state-by-state thing.
One thing this has taught me is to ride herd on my buyer getting financing. I could have discovered this challenge weeks earlier had I been in touch with my buyer's lender. I'm learning what questions to ask of whom and when.
Thanks for saying that you haven't had a deal go smoothly yet, it helps me with perspective.
I'm not so sure about buying and selling an option. Wouldn't the investor's profit then be out there for all to see?
You're talking about doing an 80% no seasoning refi, help me out here, I'm not experienced with refis, would that need money down, or not? Can you give me more detail on how this would work?
Thanks for your input!
By the way, leaddog and I are working on Deal C together.
Heidi
Here's a short rundown of a quick refi, Heidi
By your figures, DEAL C FMV = $180K (must have recent appraisal), total payoff to own = $137K. Buy the property 'subject to' the existing mortgage. Get deed in your name. Take deed/appraisal to your mortgage broker. Since you own the property, you can borrow against the value, not the purchase price. 80% of $180K is $144K. Closing costs could be $3-4K depending, but can be rolled into the loan. Still gives you $4K or so to pocket. Check with you mortgage broker first to make sure that he'll be able to do it (if not, find another one).
If an investor pays you upfront for the option, then most likely no. If you must wait until closing, then yes. If you're in a disclosure state, purchase prices are public knowledge anyway. Anyone wanting to know what you made just has to go to the courthouse clerk and look it up.
One more thing on the double closing. The reason for separate funding for each deal has to do with the closing agent, not you. The closing agent is responsible for all funding at a closing (that's way they require certified funds from you). If they were using the end buyer's funds to close your deal (your's has to close first) and something went wrong with the 2nd closing(tons of possibilities, bad funding, titlework wrong, signed name wrong, etc), the closing agent would be responsible for paying off the first seller.
Most closing agents don't want to be responsible for that. In your case on C, that would be $137K + expenses that they'd have to pull from their account. BTW, this is the illegal part too, because the paperwork has to be 'doctored' to perform it this way, only it's the agent that will be in trouble (at least the most).
Roger
Roger, how do people in sandwich lease options then sell their houses. It would have to be a double closing wouldn't? I can't believe that everyone who has done a sandwich lease option would get their own financing for 2 minutes to just get paid off again. Must be a state to state thing.
Regards,
Tom
Could be a state by state thing, Tom, but I doubt it.
The closing agent would still be responsible for the funding of the first loan, if something happened to the second deal (too many possibles to list) regardless of what state you're in.
As far as the L/O guys, you'll have to ask them how they do it, I don't know.
I never said 'obtain' financing. I said 'funding' and IMO they're completely different. Financing is going to a lender/broker and getting a loan. Funding is finding the money to close the deal.
Even finding the funding, the end buyer still must qualify for a 'no seasoning' loan, and now, alot of banks (as mentioned above) are limiting the profit that the investor can have on a property.
My problems with the double closing posts, as I've mentioned here and elsewhere, is that people throw it out as a 'no money down' way to buy and sell properties using your end buyer's funds. In my research, it doesn't work that way.
Double closing weren't designed to be able to sell to an end buyer. When they were first introduced, it was for wholesale deals: buy low, sell low to another investor. Most likely, the end investor either has cash or HML or equity line to buy the property, thereby avoiding the seasoning issue.
The other issue with a double close to a retail buyer is more common sense. If you can find a buyer willing to pay your asking price, that can obtain and buy within 30-60 days, why can't the original seller? What will you bring to the offer that the original seller can't?
Roger
Roger, I agree with you on the seasoning issues in regards to double closings. I do think that the courses of the "Gurus" should be updated to reflect the change in times. Double closing may have worked when seasoning was not an issue but now it is an issue. People won't find it out until after they purchased the course. Have you had any luck using land trusts in regards to selling retail. Instead of taking the house in your name you name it to the "Family Trust" and then sell it to a retail buyer. I heard that some lenders may just view this as a family estate planning and won't count it as a seasoning problem. I am working on a deal that may go in that direction. I would love to hear from someone who had good/bad experiences going this route.
Tom
Hi all,
Thanks for the rundown on the refi, Roger. So, it looks like a no-money-down way to buy? Aren't there seasoning issues with the investor having not owned it for long? Don't refis need to be on property that's been owned (and paid on) for six months or so? I know a mortgage banker who will do a refi on a place where the investor uses the funds generated to purchase the property, but a down payment is still required.
Regarding the double closing thing, Bronchick describes double closings with the buyer bringing money in that's obtained through bank financing. He says: "In some cases, you will buy and sell the property to a retailer in a back-to-back double closing (also called double escrow in some states). You do not need any of your own cash to purchase the property from the owner before reselling it to the reatiler in a double closing." He describes step-by-step how this is done on pape 23-24 in Flipping Properties and page 64-65 in Financing Secrets of a Millionaire Real Estate Investor. In Financing Secrets, he says, "if the second sale does not happen (the one where the buyer brings in funds, be it cash or lender funds), the first transaction, which is closed in escrow, cannot be completed. At that point, the deal is dead."
He does use the term "retailer," so maybe he doesn't do this with a retail buyer, I don't know. But he does speak of the buyer bringing in bank financing.
Tom, I think putting the property into a land trust is a good way to go. We will do this with Deal C, to be sure. The title will transfer long before the closing with the end user and we will use a POA and a partnership agreement between the investor and the seller.
Heidi
Ha, Tom, I just found an article on Bronchick's site that addresses the issue of seasoning. The title of the article is "Lender Seasoning Leaves a Bad Taste."
. Seller deeds the property to the trust before closing. If the lender checks the chain of title, they will see that the seller has been on title for years and recently transferred title to a trust.
In the article, Bronchick says, "SOLUTION: Create a land trust with the seller's name on it (e.g., if the seller is John Smith, call it the "Smith Family Trust."
At closing, the seller assigns his beneficial interest in the trust to the investor and resigns as trustee, making the investor the successor trustee (an assignment of beneficial interest in a land trust is a sale for tax purposes). The new trustee (investor) signs a deed from the Smith Trust to the buyer at closing.
The answer is in the land trust!
Heidi
Heidi,
The refi will have to be a no seasoning loan as well, but they are out there. Just check with a good broker.
As far as Bronchick's description of a double closing goes:
A) Step-by-step is a little overkill. He gives a short 2-3 paragraphs (bottom of p23, top of p24) of 'how to'. Not exactly detailed in my opinion, especially when it's your money and deal hanging in the balance.
B) He is referring to selling to another investor (a retailer). These investors will typically have funding that doesn't have a seasoning issue (cash, equityline, etc). Also, this book was written before seasoning became commonplace.
C) As for the "if the second sale does not happen....the deal is dead." Try explaining that to the first seller who just received a check at closing. Or better yet, to the closing agent who just funded that check from his bank account. Somehow, I think the 'Oops, sorry' won't cut it.
D) This is the classic example of a 'guru' double closing. Alot of hype/motivation but very little actual detail. Bronchick is a lawyer by trade, yet offers absolutely no legal advise on the structure of a double closing. I wonder why?
Now, before everyone thinks that I'm just a sourpuss on the subject, I do have suggestions. There really is no way around the seasoning issue for your end buyer (sorry I don't think a land trust will help). They need to know upfront that is what is required.
But, a simple method for getting funding for the first closing is thru owner financing. By having the owner 'hold the note' you have obtained separate funding for the first deal.
Roger
Here's the link to that article, by the way.
****Must Reach Freshman Investor status before posting URL's***
h
Oh, my, how does one obtain freshman status? Bronchick's site is triple***Must have at least 5 friends to unlock***. So there.
Yeah, I know Bronchick says "retailer," but he also says "bank funding."
I think the first deal is closed in escrow, I can't imagine the escrow agent paying for it herself. I'll ask my escrow agent (my most favorite of all my team players) and see what she says.
Why wouldn't a land trust help?
Regarding your suggestion about funding the first deal through the seller holding a note: you mean, construct a note between the seller and the investor so that the note is saleable, then sell the note at closing to fund the transaction? (I hear the way to get around seasoning issues in such a transaction is to pay the first six months of payments upfront, with proceeds from the sale of the note.) I don't think the LTV ratio is good enough for this idea, though. Maybe you have something else in mind.
Heidi
Bill is a channel partner here at TCI. Anyone wants to view his stuff can either search for his articles here, or click on his name or items for sale in the shop area and find out about him and them.
It's not 'closed' in escrow. It's held in escrow. That's what escrow is, the holding of the documents. The first deal has to actually close before the second can take place. No legal way around it. If you didn't have the funds to close the dea, where do you think they came from?
IMO, a land trust would only complicate the deal. Both the buyer and seller would be unfamiliar with it (people don't deal with what the don't know), and banks frequently now will hesitate to loan money against property that is in land trusts.
No, that's not what I meant with the owner financing. You're still trying to skip you in this deal. You'll be ''borrowing'' the money from the seller. It could be setup several ways: as a normal mortgage note, bought the subject to way, or simply with a 30 day promissary note.
This covers your 'funding' of the 1st deal, and protects the seller as well (much stronger position).
BTW, I've read the guru stuff about ''prepaying'' X amount of months on a note. Doesn't work either.
Heidi, I like alot of Bill's books and articles, but keep in mind when reading guru info, that their goal is to sell more stuff, not help with you investing.
They will paint you the best picture possible when giving you 'examples', and what might have worked in a special circumstance or 10 years ago won't work now.
Roger
Roger,
You said, "The refi will have to be a no seasoning loan as well, but they are out there. Just check with a good broker. "
Can you give the names of several good lenders that a "good broker" has used in the past? I'm wanting to make a working list in the least amount of time. Can you help get me started with the list?
Thanks,
Garry
I wouldn't be able to help much, being that you're in AK and I'm in NC. If you're looking for lenders over brokers, I'd check with Countrywide. They do no seasoning loans/refi's. They may/may not do them in your area however.
A mortgage broker can help better than any one lender, IMO. With a broker, you usually get to pick between 2 or more loans for the same property. As your credit scores increase, you'll usually have more loan options. Also, a broker will be able to help your buyers than a single lender, if the very same reason, more loan choices.
Roger
Wow, that sounds too cool.
Would someone have to jump through all of these hoops if they:
1. signed agreement for purchase from defaultee.
2. Took title and in title transfer paid off defaulting loan (asssuming the purchasure had that much $$$ liquid and available.)
3. I don't think the defaulted bank would care who paid as long as it didn't go through forclosure.
4. Then sell the property retail with out the no seasoned loan.
Is this plausable???
rwwrrr
Why would you not just make a contract with the seller assign the contract to your buyer your profit is in the assignment of contract. your buyer is buying from the original owner that way. Your buyer would know that you are making a profit but they know that anyway. Just it would be more obvious
C'Mon Now RAJ!!!
Quote:IMO, a land trust would only complicate the deal. Both the buyer and seller would be unfamiliar with it (people don't deal with what the don't know),
Our network has closed thousand of Land Trust deals and hundreds this year alone.
Maybe it is b/c you are assuming (Bad Idea IMO) this 'UNFAMILIARITY' based on your own previous failed approach(es) to do Land Trust transactions.
And/or your RE ATTY's lack of expertise when you presented to them? I can't say since you've done as the so-called "GURU's" that you ridiculed in previous posts. (Failed to GIVE us EXAMPLES)
Please provide us details about one of your real world experiences whereby you attempted to use Land Trusts and failed?
or finally, just simply tell us you really aren't prepared to give us a prepared firsthand lesson ONLY YOUR OPINON about land trusts?!
RAJ you Also said:
Quote: and banks frequently now will hesitate to loan money against property that is in land trusts.
I've personally done Land Trust transactions with:
- COUNTRYWIDE,
- Citifinancial,
- New City Bank Mortgage,
- Well Fargo,
- Lehman Bros.
- Saxson Mortgage
- Chase Mortgage
- HomeComings fncl.
and a host of others...
I've experienced probably no more hassle factor, in getting these deals done, than you said you currently encounter doing double-closings.
So telll us all whether its Land Trusts or Your Opinion (or lack of experience) about using Land Trusts?
Thanks in advance!
Derrick Ali [ Edited by DerrickAli on Date 07/27/2003 ]
Derrick,
Congratulations on the amount of deals your 'network' has closed. I hope you didn't strain a muscle patting yourself on the back.
I don't do land trusts. It's not a lack of understanding about them, it's simply that I see no need for them. If it works for you, so be it. Everyone has different methods.
Since you were so carefully dissecting my posts, I'm surprised that you missed the very first section where I said, ''in my opinion'' about land trusts. I don't know whether my attorney has a lack of expertise in the area or not since the conversation has never come up between us. I'm amazed that you seem to know about my attorney's experience level, though.
Again, congratulations on getting your deals financed. I never said it was impossible, just becoming more difficult. I'll also add that someone who has done a thousand deals will have less trouble financing a project than someone doing their first deal. Experience gains respect from lenders.
Derrick, I really don't know what you were trying to accomplish with your post. Were you bored, confused, or just trying to increase your hits on your own books/courses? It really doesn't matter. If you have a difference of opinion, you can post it without the personal attacks.
Anyone can throw out large numbers of deals, and big name lenders and call themselves a star. And since you brought it up, I noticed that you included no EXAMPLES with you comments either. If you're going to crititize, I'd make sure that you follow thru as well.
Roger
Roger:
No hard feelings ole chap just wanting to get exactly where YOU were coming from...
Thanks for setting the record straight regarding SEAPRATING YO (Your Opinion) from FACT...
In that LAND TRUSTS DO WORK and are No More a Problem with Lenders than any other title-holding devices. PERIOD.
RE: Personal Attack???
Roger, you seem to be a really intelligent guy very helpful at that however, I don’t know you and never PERSONALLLY Met you b4 in my life...
And so it is beyond me as to why you think of my previous response post to be personal???
It was a simple request for you to clarify those DAMNING ASSERTIONS and ARGUMENTS (Opinion you now maintain I erred in seeing) pertaining both to ‘so-called GURUS’ and Land Trusts!
RE: Providing Examples
I always WELCOME Requests and anyone here may be able to do the same as GJB did in a previous post.
And even-though GJB requested a method to use for avoiding Excise Taxes in WA, the Quick-Turn (AKA. Flip) Method I outlined WORKS just as well to AVOID Double-Closing issues with Lenders.
SEE it Right here on TCI at:
http://www.thecreativeinvestor.com/ViewTopic8811-7.html
Roger again no harsh feelings you have your view and I have demonstrated mine.
If I offended you somehow then I must Apologize for it was not my intent to do so.
It’s just that your previous posts appeared to me that you view of most CREI Authors who Sell Information, Methods, Materials and/or services to other REIs are, in your view:
Solely-Self-interested Capitalistic Vultures Possessing Nothing Solid nor Remotely Valuable to offer and/or are otherwise suspect regarding their motives for writing Speaking, Mentoring, Teaching, Training, Partnering etc.???
I used to hear the very same Song (and sometimes still do) sung by those fuzzy-thinking leftists about us RE Investors and/or Developers.
To add in the Real World:
Nobody has ever liked the Millionaire-Missioned REI Guy especially if he flaunts his Financial Butt-Kicking Abilities in the Face of others ignorance and/or inabilities to do the same.
But then again Roger I may have gotten it all wrong --- I have been known for making a Mistake or two this Millennium (smile.)
Best of the Best to You!
Derrick Ali
Fine. No hard feelings here. However, I'm curious exactly where in my posts that I have ''DAMNING ASSERTIONS''?
I know you're a land trust guy, so forgive me if I upset you somehow, but no where in my previous posts did I say land trusts don't work, are useless, or whatever else you think I said.
In one post, I said that I didn't think that it would help in this situation. In another, I said that it further complicates the deal. It adds costs to the deal, and as I said, it may cause a problem with either the end buyer or seller if they don't/can't understand it. I hardly call these comments, 'damning.'
I this comment on my beliefs about GURUS, "Solely-Self-interested Capitalistic Vultures Possessing Nothing Solid nor Remotely Valuable to offer and/or are otherwise suspect regarding their motives for writing Speaking, Mentoring, Teaching, Training, Partnering etc.??? " is just plain putting words in my mouth.
I have great respect for what several course writers/authors have to say, including most of Bill Bronchick's works. The only reason were having this conversation, though, is because of the simplistic breakdown of a ''double closing'' Bronchick gives in his $20 books. Need to know more, buy his $600 course on the subject. I have nothing against this, but it is a marketing ploy to promote his more expensive courses, pure and simple.
Another thing that many course writers do is paint the rosiest picture possible for whatever it is they are writing about. Again, nothing wrong with it. No one wants to read a book with the horror stories of RE investing. However, people should be aware that, in alot of cases, the deals in these writings are not 'typical' but rather the 'homerun' deal.
Roger
Roger, I have carefully studied all the previous posts by you and Derrick. Although I think you both have a very good point on the subject discussed I must very much agree with you on one important thing:
Anyone new in the Real Estate business buying Guru’s courses (and I have a lot of respect for them just because they already have achieve their status of selling material!) must be aware that not everything painted in the rosiest colors happens the same way in reality. Someone must bring this up and emphasize to the beginners.
For this purpose this forum and board are really priceless!!!
Guys, I do thank you both for your patience and will to explain to others what you are really believed is true. Please keep it coming.
Kudos,
Dmitry.
Here is an idea that has worked for me. I have done a few deals where I have had the seller actually sell the property to the end buyer and placed a second mortgage on the property or a ucc1 filing on the property for my equity. That way there is no seasoning issue because there is no double close or flip. hope this helps
Is the land trust document something you can pull off the internet or is it something that your attorney should draw up? I have two properties with this same problem. I do work closely with a REI but would rather save a little if the land trust is a simple document.
BTW--Heidi good post!!!!!
Thanks--Jim
DOUBLE OR SIMATAINIOUS CLOSINGS CAN BE ROUGH EVERYTHING HAS TO BE IN PLACE , TRY INVOICING THE PROPERTY FOR REPAIRES OR A MECHANIC'S LIEN THEY HAVE TO PAY YOU OFF TO GAIN A CLEAR TITLE THEN NO ONE WILL QUESTION THE AMOUNT OF MONEY YOU MAKE ,------- YOU HAVE TO INITIATE THE REPAIRS BUT NO ONE CAN QUESTION HOW MUCH YOU CHARGE FOR REPAIRES <IMG SRC="images/forum/smilies/icon_rolleyes.gif"> [ Edited by wg on Date 08/04/2003 ]