Wholesaling To These People...
If I get a property for X amount and if I find someone who wants to buy the property with a traditional mortgage, how do you do this?
Homebuyer "sells" me the home for $160,000, then I find a couple who wants the home for $180,000....how is it done?
Thansk
you can purchase outright, close and then flip or you can put the property under contract, assign it, and take your fee. under the 2nd scenario you won't have to open escrow twice (and pay closing costs twice)
J
Quote:
On 2003-08-24 22:09, jorge121 wrote:
or you can put the property under contract, assign it, and take your fee.
J
J:
When you sell an assignment and end up creating a note -- does that have any effect on the buyer's financing? Since technically it would increase the buyer's debt to income ratio?
In an assignment, to my understanding, the buyer's lender will fund only what the contracted amount is on the purchase contract and the assignment fee is just between the buyer & the investor.
Please clarify -- thanks for your help.
This doesn't answer your question, but is is good to know that if you do a double close, the new buyer doesn't know what you purchased the property for, but on an assignment they do. If the potential spread is good enough, do a double close, otherwise just do an assignment. For more info I recommend "Flipping Properties" by William Bronchick; it's only $13 at Amazon. Also, make sure you have the "assignment" clause in the Offer for Purchase or you can't assign the contract.
iglooman