Getting Paid out of a Cash Deal

Bird Dogs, Wholesaling
1

I have been focuses so much on the various way to getting around assigning an REO when my buyer needs a mortgage that I dont know how it works when you have a cash buyer.

If I put an REO under contact and I have a cash buyer, how does this transaction go if I cant assign the contract. How do I get my finders fee out of the deal. Although my buyer has cash it seems to me, since I cant assign the contract that I may have to close on the deal and some how get paid at closing. Can someone break this process down for me…Thanks in advance

2

Hey:

As you can tell by my user name that I am a newbie…

That said, why can’t you double close with your cash buyer and receive your fee at the closing?

Just use a transactional funding company to 24 hour fund your A-B transaction and the Cash buyer will close on your B-C transaction…

Maybe I am not giving you what you need but I hope that it does help… :smile

Sharon

3

The Double Close is an option, but I am trying to avoid it being that I may have to either use a 24 hr. funding source (and pay them) or pay out of pocket…I have heard that when you have a cash buyer, you dont need to double close, you basically get all your profits

4

Hi hansleyward:

It’s me sharon_newbie again :smile

I think I am understanding what it is that you are saying.

Have you thought about working your deal as a LLC?

From what I understand, it circumvents the 90 day seasoning. Double check that though. :rolleyes

5

Hey Sharon_newbie

I do have an LLC, but are you talking about selling the LLC?..From what I understand when your buyers has cash, it is supposed to be an easy way to close the deal without all the headaches

I do know for sure that I can add my cash buyer to the contract and then after closing Quit claim the property to him for my fee, but I have heard that there is a simplier way to do this since my buyer is paying cash, so thats what I’m looking for…Thanks a bunch

6

Hey! Check this out, I borrowed it. Herbster

 Basically, you get the two Contracts together, one with your Seller and you( A-B ), and the other with your Buyers and you( B-C ). Present those to your closing Attorney, or title company, and have them prepare a contract between your Sellers, and your Buyers, for the price the Buyers agree to pay. Along with that contract, the Attorney or title company will prepare a release from contract. This will be the form that you and your Seller sign, basically, letting them out of the obligation to sell to you, and allowing the close with the Buyers. Of course there is a fee for that, which just happens to be the difference between your original contract with the Sellers, and your contract with the Buyers. This is placed on the HUD-1.

the Herbster

7

wow, thanks Herbster, yet another method…Prior to making a deal with your end buyer should you file an Affidavit of Memorandum with the courts inorder to protect your interest in the property, or can you file this with REO

8

I don’t know why, but I’m no attorney or claim to be one either. This was just a small part of an article I’ve been working on and this information comes from a collaboration of information I’ve asked of other very capable investors. Herbster

9

Or, you can sell the LLC to the cash buyer for cash, then he closes the deal.

Example.

You are under contract for $100k with your hansleyward LLC
You were going to wholesale it to him for $110,000 cash
Instead, you have him pay you $10k cash (plus your EM back?) and sell him the LLC
He walks to the closing table as the LLC, pays his $100k cash, his total amount into the property is $110k between the purchase price and the assignment fee (or fee to buy the LLC name/rights).