Ok we’ve dicussed SS’s in here up the wazoo. What about closings? What is the correct way to strucuture closings? (please read “Can I use end-buyers money to fund my SS I negotiated” in this same forum.
I say it’s possible to negotiate a SS w/ H/O without having to use investor money… First, have him deed the property to you(now it belongs to you), second, negotiate with lender, third, once you successfully negotiate deal with lender now you turn around and find and “end-buyer” who is already QUALIFIED, use their money to payoff the lender and they get a property at a great price, you make a boatload of dough and the lender gets well. some of their money. In my case I paid the H/O’s 5000 dollars. Win-win situation for all. Here’ the deal i did:
Lender Bal: $135,000
SS Price (what lender accepted) $81,500
New Sale (flip) $117,500
Title company says since I didn’t actually “close” at a title company when i initially bought the property from the H/O that we had to unravel the whole thing. They also said i coudn’t use the “new end-buyers” money to fund the deal? I ended up having to use an investors money and paid him 10% for a days use of $81,500. So i lost $8,500. So my question is: How is everyone else structureing their closings?
Do you have the H/O deed the property to you since you’ll be selling it anyway? Couldn’t you use a simultaneous closing for this deal and not have to use investor money? (i.e. once you negotiate a deal with the lender turn around and find a qualified end-buyer use his money to fund deal, close at say 1:00pm but don’t show up with money. Then have the end-buyer close at 1:30pm and bring money… (even though the money will already have been in escrow from their lender they qualified with…) HELP