I have a motivated seller that wants to sell me his home for $50,000. His house is appraised for $95,000. His house doesn’t need any repair. I found a buyer that wants to buy that house for $90,000. My question:
What forms do I use for the seller and buyer? Do I use the purchase agreement contract with assignment on the seller? Do I use the purchase agreement contract with the buyer?
With double closing, will the seller know how much I will be profitting?
It seems to me that a simple earnest money option would be in order.
Make an offer on it subject to an earnest money agreement - performing in 90 days (could be more or less, 90 gives you PLENTY of time). Write up the Offer to Purchase with the standard (your name) “or assigns”.
Then go to two separate title companies in one day to do your double escrow. Place your Earnest Money check in the first title company along with the offer to purchase. Then tell the closing agent that your other title company will be sending the down payment in the account on or before the closing date. Then at the other title company, get your new buyer to deposit their down payment.
Poof - there you go, now you have negotiated a deal using JUST the escrow money as your investment. Once both title companies transfer the title, title company 1 will cut you a check for the difference - in this case approx 40,000. Neither the buyer or seller NEED to know that you made this profit so quickly (although I find it kind of shady to not mention to both of the parties that this is how you make your living).
I’m pretty sure I didn’t miss anything, correct me if I’m wrong. You could also call a title company to ask them about the process, they should be happy to answer questions - if they don’t offer support, call a different one.
the way im wholesaling is by having both seller contract and buyer contract and giving it to the closing agent. i remind the closer the buyer is not to be told of any details pertaining my purchase. i would call the buyer with the time and place and give him the closer’s #.
its been working well so far but thats jsut me
good luck
ps… are you focusing on wholesaling?