My partner and I seem to disagree over this. I have a property under contract and I am assigning it to another investor, I do not want the seller to know how much I am assiging it to the investor for, so would I do a double closing? Or would I just get the assignment fee upfront and let the investor handle the rest?
In that respect what is the difference in simultaneouse closings and double closing with assignments?
You can do an assignment outside of closing and collect your fee upfront so the seller doesn’t see the amount. Many buyers don’t want to do that just in case the seller backs out or there is a problem with the title work.
My understanding is that a simultaneous close and a double close are the same thing. You don’t need to do a double close if your are just assigning the contract. A double close is for when you want to hide the end buyer from the seller and vice-versa.
Ok, thanks. One thing though. I was told by a few title companies here in Dallas, that I would have to actually buy the property in order to sell it at a higher price than I paid to the other investor. I feel that is not right but they all seem to think so and the ones that dont wont do assigns. Is’nt it easy to get the investor to give me a check in exchange for the contract I have? He already knows what I have it for and what I am assigning it for, so I am not hiding that from him, but the owners may have a problem with it. There house could be forclosed on in about 2 months and they have no money or jobs so I gave them the lowest price they would ask for because the house needs alot of work.
40000.00 is the price I have it under contract for, they owe 36500.00
I am willing to assign it for minimum 6500.00
AS IS VALUE is 74940.00
ARV is 87950.00 to 115000.00 depending on what kind of updates the buyer will do.
Comps: 79000 to 116000.00
Estimate repairs according to contractors: 11500.00
Keep in mind this house has another house in the back with another lot size included so it could actually after rehab and continueing the building of the second house be sold for 2 houses which would bring its comps to 116000.00
I think there is enough room for the other investor to make money, but I dont want to get an HML just to assign it, like these title companies are saying I have to do.
Assign it. Collect the check outside closing if the investor is aware and comfortable with his purchase. Move on and repeat.
Your new job is to find a Title agent who is versed and comfortable with assigns. When you assign at closing the assignment fee does not have to be disclosed to your seller. You may be required to notify the seller you are assigning the contract, and that is it !!! “THIS CONTRACT IS BEING ASSIGNED” all done. Now you will have another assignment form with actual dollar figures which the title co and your seller are not privy to…but I let mine handle the whole thing…course she gets a 5 hundred buck bonus when it’s done.
I have found that some of the older title agents who have been around for YEARS are familiar with sub2 and assigns and have to advise or train the youngins’.