Hello. My partner and I are brand new real estate investors. We’re interested in purchasing and flipping a foreclosed property. We’re located in Maryland and the property is in North Carolina. We want to flip the property using an assignment of contract. Although we’ve done our research and continue to do so, we’re still a little unclear on all the technicalities involving an assignment of contract. A fellow investor (also new to investing) suggested looking into doing a double closing. My question is, can anyone give us clarity on the pros and cons of an assignment of contract vs a double closing in today’s market? Are the terms synonymous? Thanks!
Assignments are used when you think the seller and the buyer are comfortable knowing the amount of money you are going to make in the transaction.
Double closings are used when you feel they are uncomfortable with knowing how much you are going to make. As for other things, double closings will run into seasoning issues and may require you to do an actual purchase.
theinvestoracademy is correct is this description of the purpose of an assignment vs double closing. What you should so is, either find an attorney or title company, which does double closing, to close the deal for you…they would assist you with your contract.
You will need funds to close the first. Each closing has to stand on its own. You can no longer rely on the secod to close the first.
Thanks for the feedback - it will be very helpful as we progress with our first transaction.