It sounds like you don’t have a very good grip on what you are doing. Is it one house or two? Is the price $150K each, or $150K total? Before you go any further I suggest you do some fast studying. Never put the cart before the horse.
Clouding the title does not get you paid. It just prevents the owner from selling to anyone else. I’m busy watching football but I’m sure there are others who will respond to your questions.
Real estate is a tough and complicated field. Study. Study. Study. I’m sure you learned how to swim before you just jumped into the water. Be careful of sharks.
but the last question concerns me: “DOES ANYONE OUT THERE DO STRICTLY OPTIONS?” are u actually going to do a double close or just assign the contract. please clarify
I’m not sure exactly what I’m doing
I know clouding the title wont get me paid!That’s Why I’m posting this message.
I read all I can, but isnt that what this website is for.
Yes I have found buyers, they are selling for 155k each.
When I say strickly options, I mean just options, not lease options
I not sure if I should do a double closing or a assignment, thats what I’m asking.
I glad someone can answer my question who wants to help beginners like myself who ISN’T too busy watching football!!!
if u assign i doubt any investor is going to pay u $30k for each house/contract. is this a wholesale flip? there needs to be a HUGE amnt of equity for that, so i think u probably need to do a dbl close, which means u need to buy and then sell all in the same day. do u have title to these properties?
i have never done a dbl close, so I cannot speak from experiance. did u just put the properties under contract or just talk to the sellers? what is ur exit strategy?
if u r selling to a buyer then u have to be the owner or have a lien position in order to get the difference between the buyer’s new loan amount and the current payoff. u need to take ownership somehow, like buy with hard money or conventional funds, find an investor with cash, subject to etc. who is the current owner?
in order to assign the contract: that means u need to find someone basically to fill ur shoes, hence an assignment. they pay u ur fee and u r on to the next deal. that pmnt won’t be $30k for each house though. u r only gonna see that if u own them or somehow have equitable interest
i think u have lots of studying to do. u have entered into a real estate deal without an exit strategy. that’s what mtnwizard was saying earlier about putting the cart b4 the horse. then he went to finsih his football game
Hi, I’m no expert so I can’t give you advice about these properties but to me it sounds like you found some people that want to sell at one price and you want to turn around and resell for 30k more for both of them. Is this right?
FOR THE EXPERIENCED ONES:
Would this be able to be done with a Profit sharing Agreement?
I’ve read a little about them but obviously don’t completely understand them.
So what do you think? Is this what could be done for this type of situation?
u need to go back to square one and figure out how u want to acquire these properties. u have to own them in order to sell them to make the kind of money u want to make on them.
if they owners will not sub 2 them how are u gonna buy them? CFD them, and then double close with ur buyer? buy them with hard $? the key is to get the deed in ur name then u own the properties. i don’t think anyone here is going to tell u step by step what to do. u should know the basic steps already and ur exit strategy b4 u get an option contract. my advice to u is to assign this contract to an investor in ur area for a few grand and move on. there is nice equity in the deal for an investor to do it, and u found the deal so it’s half way there already.
What i would do if i were you, would be to determine how motivated the sellers are. If you are using an option and the seller understands options then have the owner add you to the deed giving you only 1% ownership subject to your buyers finding financing or subject to you finding financing and that is all you need to do to sell this property. You can even just set up a double closing. You just have to close twice preferably 30 minutes apart. You would own the property for 30 minutes that is long enough but to get over the seasoning issues you have to find a lender that does these types of deals. Look through the yellow pages. It may take you all day to find one, but when you do it will be worth it. Get a good attorney that can link you with a closing company thats also familiar with these deals.