I have come across some land that someone is selling for 20k. I have found someone who is willing to pay 35k for this land. I don’t own the property nor do I have any relationship with the seller. What’s the best way for me to pursue this deal? Do I buy the property from the seller and go through that whole process and then sell it to the new buyer (this will take a some time I would think) or do I tell the seller that I will you 20k but will give you a check for 35k and you will then give me a check for 15k or do I assign the contract to the new buyer? How do I prevent the buyer from pulling out because he realized he could have got the land for 15k cheaper?
Well you could wholesale it, that normally doesnt take more than 2 weeks, or you could sign the contract with the buyer, then assign it to the buyer for 2 or 3 thousand. Anything basically is assignable actually, you can even assign cars and boats. haha
Personally I would place the subject property under contract and than get the property under contract with my buyer and do an open title close, double close or also know as a simultaneous close.
Basically the Title Company closes with my buyer first and closes with my seller second.
You can also take title to the property by a cash purchase and have the title company to keep the title open sell and close with your buyer in a few days after you take title.
JohnMichael- Isnt that another form of an RE option?
Sure it is a form of option - but an option purchase differs depending on what strategy one uses to acquire the property.