What Is The Easiest Way To Flip/wholesale A Property?
Okay, I want to clear up some things that I think I am confused on as are others.
If you find a property and seller wants very little money for it and you also have a buyer who will pay more money for it...what is the easiest, simplest way give this property to your buyer and collect your difference or fee?
We are talking about an all cash buyer.
Do you put the property under contract, then assign the contract to the buyer? But then you have to do a simultaneous close and use title co. Is there a way to do it where you can just have the seller sign the property over to the buyer and you get your fee? I am guessing that the only way this would happen is if you trusted your buyer, otherwise you would have to do the simultaneous closing to ensure you got paid out of the closing money from the title co.
Interested to see what people say,
Christian "The Solutions Kid" Beebe
[addsig]
It depends on your relationship with you buyer. I charge a flat fee 5k, with half up front, then the other half the day it closes. There have been other times where I got the entire fee upfront, assigned the contract, and the buyer closed the next day Hope this helps....
Prosperous investing,
td
If you just put the property under contract with the seller for your price and then assign it to your buyer your assignment fee will be the difference from what your contract purchase price is and what the new buyer is willing to pay. When you assign the contract to your buyer you are now out of the deal and the buyer closes so you do not have to do a simultaneous close. You can get your full fee upfront before they even close, or you can get a deposit and the rest at closing. Your fee will go on the hud1form. I would not do anything without a title company though. Hope this helps a little.
4 example sake: Say you get a seller under contract w/ assign. clause and they want to sell for 100K, then you find a buyer that is willing to pay 150K. Are you saying that you charge the buyer 50K (the difference) upfront, give him/her the contract, and then step out of the deal and walk away with 50K?
~Kristin
That would be too big a fee to collect from the buyer. If I had that kind of profit I would do two closings keeping the buyer and seller apart. Thet are to never meet if at all possible. That is enough money to get someone really upset. You deserve it if you can earn it but wow. Like most of the other posts a fee of $5000 is easy to collect as an assumption fee. Much more and I would do a double closing.
Hope this helps some
Ted Jr
I've been reading more and more posts about the increasing difficulty in assigning contracts - triple conveyance needed, etc.
If you have the "Jane Doe or assigned" language in your contract, that does mean that either you OR your assigned buyer can actually close on the mortgage, correct? I'm just not sure why I'm reading all this cautionary stuff when everything in the literature seems so simple.
Assignable contracts are easier to deal with than non-assignable ones. On non assignable contracts you will have problems, particularly if the new buyer is financing.
[addsig]