Thanks! I am the end buyer. Since investor is buying it from bank (short sale) and then flipping it to me on the same day, do i need to put a clause in the contract that if some reason investor could not close , investor should cover my financial charges? Is this a valid condition?In addition, is it required for the investor to get short sale approved before he close this property with me? Please help
why are you buying off an investor… why dont you do your own shortsale???
If you intend on buying off this guy then contact a mortgage broker and tell them what you are doing they will have lenders that will do it…
or
Worst comes to worst, call your seller and tell them you have to buy direct from the seller and you will pay them the balance as a fee… so they get there money regardless…
by the way:
if these guys really know who to do a shortsale it should be in there land trust anyways…
So they shouldnt be double closing…
You know that right???
If the seller assigns contract to me, what would be the max. amount I can pay him as a fee?I know for sure, investor has not got short sale approved yet, how come they want to close next month? What are the risks associated with this transaction?
If this investor hasn’t got the short sale approved yet why are you even dealing with him. He might be wanting your money up and leave you to finish it up. If ther ever was a deal. Check this guy out.
Rule of thumb 10% of net on an assignment… NEVER pay prior to closing the resell…
As for seasoning and FHA that is easy… Shorts take 90-120 days anyway… Use a land trust and deed the property as soon as you have it under contract and your cancellation period has elapsed from the seller to the address of the property land trust. Example 1234 Apple Street Your City Land Trust. Your Name, Trustee. You will have to decide if you are going to indicate on the county transfer document if the transfer was a gift or sale.
NEVER record the Trust Agreement and NEVER put your Name, Trustee on the grant deed before the Trust Name… Always after… Always spell out the (street drive avenue etc). Best situation is to have over 21 characters before the trustee name. If you do eliminate the City.
Have your Grant deed and trust agreement notarized at the same time… make certain your trust has been approved by the title insurance company before its use.
Good to be here
These deals sure were a ton easier 5 years ago!! LOL
Well, let’s make this more complex. I have this situatuion.
I have a wholesaler that I buy from time to time. Double closings. Using hard money so title seasoning not an issue.
Now I have some other investors wanting to by in on my deals.
So I might be looking at a triple close?
A to B(wholesaler) to C(me) to D(fellow investor)
Now I know you are asking why the hell would you do that! Well, the volume of properties is what wholsaler and I are after. We both are doing very low fees to pick up volume. 15 properties a month.
This is just something I am exploring doing. Ideas on best way to handle the deal?
Goal is to keep my source hidden from other investors who are “customers” and “competition” in the same market.
Also, since I don’t have issued with title seasoning I need to be careful of the sourcing of my buyers that their financing might? But, again… I am using their money to purchase house and get a “commission” on the deal.
Thanks
You can just assign the contract between you and the wholesaler to your end buyer. I don’t know how you are going to keep the two from crossing paths, though. I guess you could show up to the closing and try to keep them from exchanging contact info.
To answer your question about your buyer’s financing- yes, you will want to be sure their lender does not have title seasoning requirements, and that they will not have a problem with the contract being assigned.
Good luck,
Steph
Not worried about them crossing paths at closing. I am in Indiana. The person I buy from is in Arizona. The person I sell to is in California.
All done via mail and EFT.
I thought the assignment might work, but that just seemed too easy.