No More Double Close.
A couple of mortgage brokers are telling me that double closes are no longer being accepted by the lenders.
How are you closing wholesale deals without showing your cost to the buyer or requiring them to use hard money?
JohnCl
[ Edited by JohnCl on Date 08/02/2004 ]
haven't been able to do this with any institutional lenders... always having to get new contracts between only the current owner and the end buyer (me), with a note from the owner to the investor
I think you are speaking to incompetent mortgage brokers. Most residential loans using a mortgage broker use an attorney to close.
Well you simply need to talk to a mortgage broker that is willing to use a title company or attorney who will do a double close for you.
GOOD LUCK
The only way to do this is to create a lien on the property possibly for services due! You must have flexible sellers and a guarantee that if you do not close the deal the lien will be removed. This way you will not be double closing! Good Luck!!
Yes I suppose you can tell the sellers to sell to your new buyer directly and then get paid for your services but this is tricky to explain and probably also brokering without a license.
The only other thing I can think of is to find a rich guy and tell him you'll pay him $2k for 100k (or whatever) of his money for one day.
If you bring your own money to closing, then it isn't a double close. You can buy the property in the morning and then sell in the afternoon. You can even close at different title companies/attorney offices. This seems like the best solution although depending on the price of your home, you may have trouble finding the private funds.
Makes Sense. Just leaves one more hurdle. I am worried about the buyer's ability to buy a non-seasoned title without having to revert to hardmoney or the like.
Maybe I need to learn about trusts: IE:
Seller puts his deed in a trust and I pay him cash (from private investor) to make me beneficiary. I sell my beneficial interest to buyer. Same trust, same title, new beneficiary.
What does everyone think?
JohnCl
John:
Who cares what your cost is? If the numbers make sense to your wholesale buyer who cares??? If you find a deal for $200k worth $350k and want to wholesale it to me for $270k I would have no problem paying you a fee of $70k.
One recommendation would be to simply "assign" your escrow to your wholesale buyer.
-Open escrow as an "assignment"
-Collect your fee from wholesale buyer
-Call escrow and "assign" escrow
-Call seller and tell them you are going to close in your partners name for tax reasons. This is actually true because you are taking part of the action
-Go to bank and cash check
-Let your wholesale buyer close the deal paying cash, credit line, private investor or hard money.
This is the best way to wholesale your deals. One other option is to close it with a private lender or hard-money lender in your name. Then grant deed to your new buyer and collect your fee, passing on the financing in place to your new buyer. Your hard-money lender will want a short credit application but it should not be a problem. One more trick to throw is your bag is if you fee is a large amount, you can get a little bit upfront and carry back a 2nd Trust Deed and get paid on the back-end with interest! This guarantees that your wholesale buyer pays you.
Best Riches,
Jeff Adam
_________________
"The only place success comes before work
is in the dictionary."[ Edited by JeffreyAdam on Date 08/03/2004 ]
the last d/c i did i used my attny. it went will and no one was the wiser.....kenmax
don't let one loan inst. burst your bubble. keep going and looking until you find one that will. you must do this in all aspects of your dealings. from agent, titleco., attny., to loan inst., to paper that does your advertising, to the seller. stack your deck in your favor. when you find someone in your "court" keep using them and be looking for another peice of the puzzle to fit......kenmax
My Georgia attorney does not have a problem doing a simultaneous close. If I sale a property that I have under contract, I simply make my sale contingent on the closing of my purchase.
Last year I did a deal where I swaped land that I had under contract for cash and another tract that I sold, all at the same time. Everything except my first contract contingent on each phase closing. Three closings in the same day all funds and deeds dispersed at the end.