Selling Contracts
Is it legal to sell a contract to an investors and keeping the profit between the sales price of the property and the amount that investor bought the property at. I've been reading about people who do this on a normal basis. thanks!
Yes, your not acting as a Real Estate Agent, which in most states requires a license. You are an investor, selling an interest.
I just did one which I didn't spend a dime and made $25K. Closed escrow in 45 days.
Loved It!
8-)
Is this done as a double/simultaneous closing and through escrow or outside of escrow and considered as a "fee" (or anything else)?
You can do it both ways, but the simple way is to put a demand in escrow or get paid by the one who is buying from you.
The later is very risky in that you may not get paid.
There are a few other issue that you will have to be careful with, but that is too much info for this one page.
I'm a newbie.
Does anyone have a model contract for use in CA when the property is distressed or in pre-closure? Thanks.
Quote:
On 2004-07-03 22:41, wtwyman wrote:
I'm a newbie.
Does anyone have a model contract for use in CA when the property is distressed or in pre-closure? Thanks.
I won't provide a link to the site where you can get one, but if you type "epa0307.pdf" into Yahoo! you'll come up with a link to an equity purchase contract suitable for preforclosure buying and just for California. If you're going to deal with pre-foreclosure make sure to study the pertinent California civil codes (especially 1695), because there's a 5-day cooling off period you MUST adhere to. For any other deal, you can use the standard contract used by real estate agents (includes purchase agreement and escrow instructions)...or modify it to suit your needs.
I suggest you get a good Escrow Company and accept instruction from a really experienced Escrow Officer. I have used two or three for years and I always pre brief the Escrow Officer if the transaction is in any way a diversion from the norm.
Double Escrow is sort of a naughty word out here in LaLa Land. I follow the lead of one of our ex presidents and call it.
"CONDUIT AGENCY" Pres. Johnson
The request for funds out of escrow leads you into all kinds of strange and nafarious situations. Best avoid them and just let the Escrow Officer request the funds and deposits as a normal method of completing a transaction.
Most important read 1695. Follow it to the letter.
Cheers Lucius