Guys, need some help. I have a wholesale deal I am working…I have a bank owned REO property under contract. I have someone who would like to purchase the property but the title company won’t do a double close. The bank also will not let me assign the contract out.
My contract is tied to financing…therefore I do not want to have to close this as then I’ll have to pay origination, etc with my lender.
My buyer is a cash buyer.
Any suggestions?
Technically speaking, you are screwed, But I see no reason why the bank won’t let you do a double closing or an assignment. You should have put the “AND/OR ASSIGN” after your name on the contract except the bank denied you to do that. My suggestion would be talk to the bank and tell them that look- I have a cash buyer who wants to buy the property and wants to close as soon as possible, and that is there a way to close on this property with me getting the wholesale profit and the end-buyer getting the property. I am sure they will consider doing something.
Craig,
You can add your buyer onto your contract (just call the listing agent and tell them you need to have your partner on title as well). Then give your buyer a quit claim deed after closing in exchange for your assignment fee.
I just did this with an REO a few weeks ago and it went off without a hitch. I’m closing on another this Friday, and am doing the same thing.
Steph :cool
very good info!
If the Title company won’t double close, find another one that will.
Can’t change the title co as this one is bank owned…therefore they are making me use their own title company who won’t double close.
How can I have them added to the title if they are a separate company? Right now the contract is in my company’s name…my buyer needs to close this under a different company name.
My buyer wants to pay cash…however the accepted contract under my company is tied to financing. I obviously do not want to close as I’ll then have to pay a bunch of fees. This is the reason I can not quick claim it.
I was thinking of opening a new LLC, have the contract changed to the new LLC (if the bank will let me) and then sell the LLC to my buyer for the assignment fee. Has anyone done this?
Thoughts…this one is a bit messy.
I appreciate everyone’s help!!!
Craig,
I know of a few investors who do what you just described with the LLC.
I’ve never done it myself, but can put you in contact with them if it will help.
Also, have you looked around for a title company who will do a “dry close?” Basically, they will use the funds from your buyer to fund the transaction with you and the bank. One closing will be at your title co, and one at the bank’s title co.
Don’t fret, there are ways around it.
Where are you located?
Steph
Just wanted to give everyone an update…the bank has agreed to letting us assign this contract over. Guess the answer really depends on how close we get to closing. :biggrin
Thanks for the info! Definately going to use this strategy!