Need help with profitable deal

:helpI need help with a deal that I would like to pursue. I have come across a house that someone is wanting to assign his contract over to me to purchase. The property is in California and I live in Indiana. It does need some rehab work and I haven’t done an out of state rehab yet. However, the property has lots of equity built into it. So much so that I was wondering about passing it on to another investor to do the rehab work.

My problem is: What’s the best way to go about profiting on this deal, or can I?

  1. Is it possible to double assign a purchase contract to another investor? Have it assigned to me and then I myself will further assign it on to the rehab investor.

  2. Should I consider doing a double or simultaneous closing? Close with the rehab investor first and then those proceeds would pay to close with the original seller.

  3. Buy the property outright and then immediately look to sell the property to the rehab investor? Wouldn’t I potentially run into title seasoning issues by doing it this way? Could I make this option work with a land trust?

Any and all comments would be greatly appreciated. Thanks.
Brian (Fort Wayne,IN)

Hi Brian,

Where in California is the property? What are the numbers?

The good part is you have some options to consider.

  1. You can partner with a California investor to drive the rehab and sale of the property. Depending on how you negotiate participation (money, time, effort, etc), this could be a good option.

  2. I don’t see why you couldn’t “double assign” the deal if everything is properly disclosed. I have not been involved in such an arrangement myself, so I would definitely discuss this with a real estate attorney first.

  3. You can buy the property outright and wholesale it to another investor. Depending on how the buyer finances the purchase, title seasoning should not be a problem. Again, I would do further research to confirm this.

FYI, You may have trouble finding an escrow officer willing to do a double closing for you unless you have a prior relationship with someone who has done it for you in the past.

Please email me offline if you would like to discuss further. I am a California investor myself and would like to explore this further with you.