How To Buy From Investors ?

If I want to put an Option Contract on a property and the Seller is not the original Seller but an Investor with property under contract, then how does it work?

Do I just offer the Option Contract to the Seller/Investor as normal and pay the Seller/Investor from the proceeds ar closing?

If my end buyer is a cash buyer, then I do an Assignment of Option with my end buyer and then pay my Seller his fee or profit ?

If my end buyer is an owner occupant requiring financing generally a lot of lenders will not do assignment contract fee and want the Seller to be on title. So if my end buyer signs the contract with the original Seller, do I need a performance mortgage to get paid at closing and the Seller/Investor gets paid from my proceeds ?

In my opinion the biggest issue you will have with this deal is how it is being structured. The end buyer is an owner occupant. They will be using conventional financing. Meaning bank or a mortgage company.

There are no banks that I’m aware of that will lend an a deal that has two other individuals in the middle that need to be paid off. Banks don’t like to structure deals that way, and most of the time won’t even be able to follow what you are trying to accomplish.

Banks want to simply have a seller and a buyer. Thus here’s what i would suggest you do on a deal like this one.

If your purchaser is solid, and their financing is solid, you should figure our how you can buy the property and get on the title. Then selling it to the end buyer becomes much easier.

Also, if you are going to go in this direction make sure the bank has no title seasoning requirements. Some banks now require the owner to be on title for a few months before being able to resell the property.

Peter V.