Which Is The Best Way To Flip? Contract Assignment Before Closing OR After With A Simultaneous Close
Some have told me they prefer assigning the contract before the closing because its much easier considering the paperwork is kept to a bare minimum. They just use "And/or assigns" after their name on the purchase & sale agreement. However some investors have told me they don't like to use And/or assigns because it sends a red flag to the seller, AND that ALL contracts are allowed to be assigned even if you dont use and/or assigns. All RE contracts are automatically assignable unless stated otherwise?
Others have told me they prefer the double-close because it prevents the buyer from knowing how much you're going to make. Has anyone here actually completed a simultaneous/double-close transaction? Would you be able to go over it step-by-step? For ex.- Does everyone meet at the title company all at once? What if the buyer is out of town? Are the people handling your transaction at the title company aware of what you're trying to do and how much money you're going to make on the deal? How soon do you get your check after the close?
Also, recently I heard that most title companies won't do a x2 close anymore .. ?
I guess the 3rd way would be to just buy the property outright with a hard money lender, then close, and resell.
I suppose none of these methods avoid the 90 day title seasoning issue from a conventional buyer though...[ Edited by onehundredpercent on Date 03/03/2004 ]
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