We have a property under flex option with another wholesaler (we are party C in this scenario). Need clarity on a few things.
After end buyer is found (party D), which parties are on the P&S agreement?
Instead of a P&S, does party B assign to us @ party C, then as a final step we assign to party D?
Who is in charge of submitting all of the paperwork to title company so we can close the deal?
If I am not understanding something, can someone run me through process?
Thanks in advance.
Good questions, I have been searching for the answers to these same questions everywhere and still left confused about the whole matter. From what I understand, wholesaling another wholesalers deal IS possible with a flex option. But the steps that follow after optionee wants to exercise deal (finds end buyer) are what we are really searching for. If you ever figure it out drop me a PM. :biggrin
It seems like a flex insures the 2nd investor will get their assignment fee by giving up interest to end buyer, but how does it insure 1st investor (optionor) will get their initial assignment? Just feels safer for us to get an assignment contract from 1st investor then assign to end buyer and have them agree to pay assignment fees? I don’t know…That’s why I am asking. :help
This answer probably won’t satisfy you but I promise you it’s true: Don’t worry about all that. Just find a buyer and see to it you get paid. Due to a whole host of factors, there’s many different ways that closing agents can handle the mechanics of a particular transaction…they may arrange it with 3 assignments in place, they may arrange it directly between the seller and end buyer, there may be some financing restrictions, etc…as a result of these factors your fee may appear on the settlement statement (my preference), it may come from the seller after closing, it may come from party B or C, or whatever…all you need to ensure is somebody pays you what you’re owed. …point is none of that really matters as long as you make sure you get paid. Just focus on finding a buyer.
I know you want a precise formula but I assure you at the end of the day it just depends and honestly it really doesn’t make much difference as long as you see it through and get paid.