I have been on REI for about a year but have never posted anythng. I have a deal lined up but wanted to run it by the group to see if they can see any problems. I seem to get totally confused when it comes to the double closing part.
Here is my deal that I either am going to wholesale or am going to rehab if I can get this thing closed.
I found a borded up house in my town. I just happened to notice it one day after driving by it countless times. It is directly across the street from the local high school and 2 blocks from shopping and restaurants.
Well, after asking around it turns out that this abandoned, borded up house is owned by a major retail store chain. I hunted down the people who handle their real estate and asked them if they would sell me the property. They took their time, but finally called me and said yes, we will sell you the property.
Keep in mind, they are out of state and have no clue what the property looks like. I told them the house was going to have to be torn down so they should give me a good deal on the land to compensate me for my tear down cost. :biggrin
They end up gettting a local broker to handle the transaction. The broker asks ME to get him some comps so he can recomend a selling price to the store. This broker then tells me he drove by the property and he agreed it needed to be torn down, so he would figure that into the asking price.
Well, there is NO way this house needs to be torn down. In fact, I took the back board off the house went inside and it looked great. The kitchen cabinets looked brand new and the power was still on. It had some water damage in the front of the house. I figure this property wll need 30k in repairs to make it look great again. The ARV value would be 180k based on the local comps I got from my local realtor.
I offered 60k for the house and they came back at 79k. I said that would work.
79k plus 30k in repairs = 109k
Here is where I need help guys.
The store who owns the property wants to write the contract and they want to use their own title company. Will this cause me problems when I flip this deal to an investor?
What if their title company will not do double closing?
Should I just pay the 79k with hard money?
Would any of you rehab this deal to make the maximum profit ( 70k! )
If I was to wholesale this deal how much should I get for it from the investor who I sell it to? ( I have a good list of investors already! )
I have read about double closing, have listened to the pros talk about double closing but to this very day, I don’t get it. LOL I have read the threads on here that talk about the double closing routine and it still is hard for me to understand. What is wrong with me??? Anyway, if anyone would be willing to take the time to explain in detail double closing I bet it would help tons of people on here.
Thanks everyone.