Simultaneous Close Vs. Assignment
I am a newbie investor and have developed a nice list of leads from my first drive, a newspaper ad, and some referrals. All are vacant/abandoned homes that I would be interested in wholesaling. One home in particular has a motivated seller and lots of profit potential. I was interested in doing a simultaneous closing in order to hide my profits from the rehabber instead of assigning the contract. How does this work? Are there two seperate contracts on the property at the close (seller to me) (me to rehabber)? Are there any rights the seller must give me in order for me to legally write up another contract to sell this property before I actually have title? Any help would be much appreciated... this prop could be a nice first deal!!! Thanks!
If you are going to do a double close then you will need to draft up two seperate contracts, one betwee you and the original seller and then another seperate contract between youn and your potential buyer. Of course you will need to fund and close on the first contract before you close on the secound contract so you will need to have $$$ to buy the house. Any title company should be able to work with you and schedule both closings one after the other.
HTH
I found a lot in a luxury development that can be seller-financed although seller wants to sell second as well. Lot is priced at $650k will appraise for $900k. Terms would be 8.5% interest no payments or interest due, balloon at one year. In California I believe there will be a capital gains tax of 28% to flip, 6% sales commission, $4800 in taxes, about $5000 in HOA dues per year and seasoning may be required. Is there any way to make money in this deal? Other lots are on the market for $1.1 million. If so, I need someone to purchase the other lot.
Any other opinions / answers ?
thanks
Chase, Washington Mutual, SunTrust, VA, and others do not have seasoning requrements.
Brenda
Brenda, thanks I will do that
Oh, and purge the dreaded word "flip" from your vocabulary, at least when talking with lenders. Really can spook them.
Loon
I appreciate your answers, thanks for the tip, I will read
Loon,
Since I am learning this art / technique
I still do not get it so well but I will read and read until understand if I do not have luck, help me out