Why Assign A Contract When You Can Simultaneous Close?
Why would I want my buyer knowing what I bought the property for when I can close simultaneously with my seller and buyer at the same time? Are all title companies and RE attorneys knowledgable of this closing method?
thanks[ Edited by handsomeprofit on Date 08/14/2004 ]
Yes most are. My attorney and title company are. The only thing you may have a problem with could be a lender from your end buyer. IF your making a profit, some of them want to know where the profit comes from. Some lenders don't care. In some states all parties have to be informed of the transaction. I generally wouldn't want my end buyer knowing what profit I make unless it is small and to another investor.
If you have no money and bad credit how do you do a concurrent close, if you do not have the money to put up? Please explain in newbie terms. Thanks!
If you have no money and bad credit how do you do a concurrent close, if you do not have the money to put up? Please explain in newbie terms. Thanks!
Chakib
Welcome newcomer. Advice? Come to this site and study the various forums until one excites you as a place to start. For example, go the the birddog forum and learn how to bring discount properties to investors who who have what you don't--money.
Go to your favorite bookstore and buy a couple books that have chapters on creative financing. There is an education in using other peoples money, so do your due diligence, and buy a book and get started learning.
This site is a real education, but some of the heaviest posters do little in the way of actual investing, so you have to watch out for some wacky ideas. Usually the wacky ideas get the most discussion going, so you cannot get far off track.
Good luck. This is a good life, but it is hard work. Only a few of thousands who start out to become real estate investor millionaires actually follow through and achieve that goal.
Dan
Chakib, your Buyer will put up the funds. The Seller signs the Deed to you or your applicable entity, and it goes in escrow. You sign a Deed to the Buyer, and it goes in escrow. If the Buyer brings enough money, both Deeds get recorded. Have your Contract with the Seller state that he must purchase a "hold open" title insurance policy; that way, you don't have to get title insurance if you are closing at a title company that refuses to close the deal otherwise. A hold open policy is one in which additional title insurance is not required if the property resells in 12 to 24 months.
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Quote:
On 2004-08-14 16:05, handsomeprofit wrote:
Why would I want my buyer knowing what I bought the property for when I can close simultaneously with my seller and buyer at the same time? Are all title companies and RE attorneys knowledgable of this closing method?
thanks
<font size=-1>[ Edited by handsomeprofit on Date 08/14/2004 ]</font>
It's easier to assign. You don't even have to go to closing.
But...when you assign the buyer will know what your making.
JB
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Why worry about the fact the buyer knows you are making a profit? When I am buying from wholesalers, I assume they are making a profit. I want them to make a profit so they will keep bringing me deals. The assignment of contract is a cleaner close, typically with no seasoning issues. Generally much better for everyone.
Just make sure the deal is good for your buyer.[ Edited by bnorton on Date 10/18/2004 ]