I just received the SS approval letter from the bank. I do not want to purchase the property anymore, how can I assign it to an investor for a small fee? I am in Maryland. State of laws, laws, and more laws. (I was that I cannot assign a SS).
The numbers are great.
Sales price to investor $35K
Repair cost is approx $45K (3 contractor estimates)
What sales process can I employ to get this one sold. I have the buyer but don’t want to rely on just his information.
Who’s name is on that Approval Letter? Is it yours? If so, you must be the one for the purchase. The lender won’t let you assign it. That Approval Letter is the “contract” they have with you. You either buy it from them, or they will retract their approval to let you, or whoever’s name is on the letter, buy the property at the price specified in the approval letter. You can always try and ask them if they will let you assign, but its doubtful. In a short-sale your “assignment fee” is from after you’ve resold the house once you’ve bought it.
Thanks Dr White.
The approval is in my name. My initial intentions were to close on this property and then have the investor buyer purchase it from me. Thanks again.
It sounds like you’re trying to avoid doing a double close (I’m guessing that state laws prohibit double closes), or your buyer is using conventional financing. I’ve never used them myself, but I’ve heard that there are companies that will fund the purchase (first leg), provided the end buyer is ready to close on the second leg. Or why not just get private funding? Based on your numbers, this seems like too good a deal to pass along to another investor for just a “small fee”.
If I may ask, whats changed that you don’t want to proceed the way you were going to? the numbers look very good
I am currently in the process of rehabbing another property and is not willing to take on the rigors of another one. I found an investor who is going to purchase the property by buying the interest of the LLC which is the current purchaser. An easy $10K.