I have been attempting to do the simultaneous close as taught by Scott Rister and everything has worked all the way up to the Buyer submitting the contract with me as the seller, not holding title. So far everytime i get a contract with my seller and get a contract with my buyer. When the buyer goes to submit the contract to his/her conventional lender, the lender rejects the contract and suspends the loan. Because they see im assigning it and not holding title. Seeing as though Scott Rister wont respond to any of my email questions. I would like to know if any of you fine people could me help in overcoming this obstecle in wholesaling houses.
My only way around this so far is doing straight contracts with the seller and buyer and including my fee as a special instruction in the contract. It works but i dont like both parties knowing what im going to make on the deal.
I think you nailed it about why the lender says “no”. It’s hard to imagine anything that could look like loan fraud more than that does.
Why didn’t your title company catch it?
Or did Rister tell you to avoid them?
In the real world, double-closings sell more seminars than properties. I can’t imagine a reason to use them, if they are even useable at all. My title people here in Phoenix won’t do them. If I understood the office manager right, it’s an illegal misappropriation of funds.
Here’s how you stay off the HUD sheet: grab your purchase contract with the seller, fax it over to title and open the escrow. If the title report comes back as insurable, THEN go to your buyer, give him the title report so that he knows he’s buying a good contract, and include the contract itself AND your signed assignment form all in return for his payment right then and there. He goes to closing. You’re paid and out of the picture.
And because he paid you beforehand, and from his own pocket rather than from escrow funds, your fee isn’t part of the closing. And never was. Thus you don’t appear in the settlement. Your paper trail ends at the assignment form.
I would have done my last deal that way just to run through the steps if I’d understood the process better at the time. My own fear is losing a short sale because some bean-counter in loss-mit sees the preliminary settlement.
“This Prime guy is shorting us and yet he intends to make HOW MUCH?!?!?”
Yeah, guys, that’s what I intend.
Especially now that it’s no longer subject to your approval.
I’m a little confused. First you said that you’re trying to do a double closing then later you said you’re assigning. Which are you doing?
I could see your problems with doing a double closing. Pr1me was right. A lot of gurus make it sound much more common than it really is. I tried looking for a title agent or attorney that could perform a double closing in my area, and they either didn’t know what it was or said it was illegal. Which it isn’t.
So, with not having double closings as an option your best bet is to assign your purchase contract with the owner/seller to your investor/buyer. Which is what I do, and have never had a problem with any lender or title agent saying they had any problem with it. The assignment contract would have your assignment fee stated on it, and the title/closing agent would put your assignment fee on the HUD-1.
Sofree, I tried to get in touch with you about some information I found on the matter that I would rather not post publically, but your 800# is not working, and you don’t list any other ways on your website to get in touch with you.
Give me a buzz or shoot me an email and I’ll forward to you what I’ve found on the matter.