WHOLESALE ? On Inspiction /CLOSING COST
Hello everyone ,
I want to take my final step and just go out and locate a motivated seller to get my feet wet and to get over the main fear that most beginners have ...my question is when determining the offering cost ..how exactly do i determine inspection cost ( would it be best to hire someone ) would that be consider un professional if the home is still occupied . I know most people say just guess but what if im wrong and the repair cost is more higher then exspected. I dont want to short change the investor and begin getting a bad rap ..and last to get the closing cost , i read that you should estimate usally 3 to 5% of the house value is this true?
thank you so much for honoring me with your knowledge !!!
Two double closings? Wow. Why not just sign a contract and include that you have the right to assign the contract. And simply assign the contract. Doing two double closing will surely soak up all of your profits. Remember double closing cost more than regular closings.
Assignment of an assignment, sounds like it would fly at closing as long as it is written in the contract, the assignemnts are done correctly, the purchase price and appraisal are in order, and you collect your assignment fee upfront, not at closing.
I only assign to proven investors who are cash buyers. Which means that my price has to be an investor price. My price is about 75-70% of retail value. If you bought a house at much above 75% of retail, then an investor will not purchase because of the price and a retail person will not purchase it because they do not have cash. For wholesaling to work, you have to get the property under contract for a really good price.
What you are proposing is mortgage fraud.
[addsig]
From what I read of your post, it seems like Mortgage Fraud to me.
Be careful dealing with your friend and his schemes. You are wise to ask for opinions and suggestions.
Anyone else?
[addsig]
Bargain76 --I agree with you. If it’s not disclosed, it’s lending fraud. And if it is disclosed, no lender that I know of would touch it.
Ddlingo -- Your profile says you’re a mortgage broker. If that’s the case, I’m surprised you even asked. Unless I’m misunderstanding your question.