I just put my first property under contract today. I put it under contract for 155k and am marketing it for 185k.
I am wondering if I should double close, or just assign. I am worried that buyers will be scared off by a large fee.
I am also concerned because I just read today that having a contract with no earnest money may not be valid. Today I got my sellers to not even mention it. I just put a slash through the space and they never said anything about it.
Phatman5,
By the way I’m reading up on wholesaling, assigning, and double close. So I’m in
the same boat. Good luck. Jacque1
When you are dealing with people who might freak out if you make too much money then a double closing might be the best choice. You may also consider putting the home under a lease with option to purchase for $155,000, be sure that the sellers dont freak out if you bring a buyer for their home at 185,000 (they shouldn’t as most sellers only objective is to sell)
good luck
Eric how do you handle a buyer who freaks out when bringing another seller, how do you prevent that if at all?
In order to do a double closing do I just use a standard real estate contract and never an assignment contract. So basically I wouldn’t inform the seller that its assignment (or at least not show them the contract). Im just wondering so that I include any necessary wording and clauses in my contract.
Then on closing I would just close with the seller, and then later that day with my end buyer? Im going to have to pay an assload of points to get that HML to close though for just a few hours… :flushprofits
Thanks
Honestly, a lot of that depends on the end buyer’s lender.
The end buyer should have a no-seasoning loan, or preferrably be a cash buyer or hard money.
These are the best ways to cash out of a transaction if you are looking at the option of assignment or double-close.
The double-closing structure is rather difficult in my market (Atlanta) to achieve anymore with a traditional lender (yes, even using land trusts).
A concern is that your ASSets are not covered if that buyer goes into foreclosure at some point in the future. The lender could possibly look at that transaction as a sort of deception and might spell trouble.
Have you identified the title company you are working with? That is a good step for the stage you are at. Make sure they are comfortable with the contracts you are using and they understand what you are trying to accomplish. They are actually great guides and mentors to help shepherd you through the transactions.
Great job so far, the only way you learn is by doing, so you are on the way!
:smile