Simultaneous Close Or Assign?
I have a property that I can wholesale and make $3-5K . I've read that with that small of a profit I might be better off assigning rather than simultaneously clsoing. Please advise.
What are the steps to do the assignment once find a buyer?
Hello all,
Quick question; why didn't you list the webpage?
Furthermore, if you are not allowed to list it, what good was it to put half of it on the forum?
SacVestor
"handsomeprofit" If you have the property already under contract, make sure your assignment clause is included. Open escrow, find a buyer, have them sign the assignment contract and send them to the closing and get paid.
[addsig]
Patrece,
I have some similar questions and you sound like you have experience!
I have a property under contract, and a buyer, and I will make 5K on the deal as an assignment. HOw do I "open escrow"? I have a title company I want to use, do I just call them and tell them what I want to do? If I don't attend the closing, how do I get paid, do I accept a check from the buyer and move on?
Thanks for your help.
I have a couple of similar situations only there's about $35-40k in the deal. Does anyone know how one can exactly get that kind of cash back at closing? What does everyone do to get the equity out at closing? I need the cash!!!
"tmpringle" find a local title co and let them know what you want to do and they should be able to give you all the assistance you need. You will be paid out of the funds in escrow.
_________________
"there are always options, we just have to look for them"[ Edited by patrecejames on Date 10/04/2004 ]
Handsomeprofit,
With doing a double-closing you may in to seasoning issues with the buyer's lender "assuming it is not an all cash deal".
With regards to assigning the contract you run the risk of the buyer/investor seeing your profit margin and going around you. However you could record a memorandum of agreement to avoid this. I don't know if this info has helped.
SacVestor
"With regards to assigning the contract you run the risk of the buyer/investor seeing your profit margin and going around you". Sorry if you had a bad experience "sacvestor"
As long as their is a large spread for both you the wholesaler and the investor, there shouldn't be a problem with assigning the contract. It is going to be hard for the investor to go around you with a signed contract by the seller.
If ever you meet any investor who has a problem with you making money, MOVE ON !!
[addsig]
Quote:
On 2004-09-30 08:55, handsomeprofit wrote:
I have a property that I can wholesale and make $3-5K . I've read that with that small of a profit I might be better off assigning rather than simultaneously clsoing. Please advise.
What are the steps to do the assignment once find a buyer?
Assigning a contract is the way I'd do it for a small profit like this one. You just get an assignment of contract agreement between you and your buyer. Fill it out, put the assignment amount, tell your buyer he has 10 days to close. Collect a $500 or $1000 deposit, after you get it signed fax it over to the closing agent.
and close the deal.
If a buyer see's you're only making $3,000 to $5,000 on a wholesale deal, and it's still a good deal for them, no they probably won't go around you and mess up your deal. That amount should not hurt their feelings...but don't put it past them. If you're that worried about it, do the simultaneous closing. If your buyer asks you what you got it for, tell him "Less than you".
persoanlly, I'd assign it. But it's up to you.
JB
[addsig]
I'm very new and still in the beginning stage of my learning but I have been taught that a way to prevent or make it very difficult for an investor to go around you is to record (at the courthouse) the contract you have with the seller. This will put a cloud on the title and make it very difficult for anyone to buy take that property from you. Again I'm just learning but that is what I've been taught. thanks
Rns