Hi, I placed about 25 bandit signs up a few weeks back and I have gotten some opportunities b/c of them…A seller accepted my contract for 93k for a 2 flat (5bd,2bt) frame building, that needs about 40k in rehab…Market Value as is on the place is about 125k…I am set to close on October 15th, but I have run into some investors who are willing to pay me 118k AS-IS…Initially my goal was to purchase for 93k, throw about 45k into the place for rehab and sell it for the low 190’s…With this investor in the picture I would prefer to just sell it to him for 118k, ditch the rehab, and find another deal…Any advice on how I do this…I would assume closing on my purchase for 93k and then selling to him for 122k is the standard route but I would hate to have to do 2 closings on 2 different days and wait until his financing comes thru…Does assigning him my contract work? Would the sellers potentially pull out if they see I made 20k+ on the house they were selling me for 93? Any guidance is appreciated.
Hi jones,
does your contract have a clause in it that it can be assigned? if so assign the contract to the investor for the assignment fee (whatever the difference is between your contract amount and what he will pay for it. 118k-93k) and then let him close on the deal. just contact the seller and tell hin everything is on schedule to close as planned the only difference is the buyes name. if he really wants to sell then why should he care who is buying it. also that way he won’t know how much you made on the deal
trwilliams
If you don’t have that clause why not do a simultaneous closing?
trwilliams & Dell thanks for the advice…
There is nothing that says i can’t assign the contract…The son lives out of state and the mom lives here in Chicago…Both of them are on title and the son would be flyin g down for the closing…If I assigned it and charged the fee( price diff between the 2 contracts) how do I receive that money? Is it given to me when the loan funds for the 118k price or do they pay me cash? In this case I know they don’t want to pay me cash…Also, Dell could you tell memore about simultaneous close…If I go that route, I should be having the investor trying to get his financing for the 118k, at the same time I’m getting my financing correct? Then would I just request and immediate payoff as soon as my loan closes? Do we disclose to his financing arm that we are not currently the owners but we are doing a simultaneous close…Any help is appreciated…Thanks
Hi Jones,
depends on the investor, some will want to wait intil the deal closes and then pay you, for that you would have to trust the person you are dealing with.
trwilliams
LJ,
There are a couple of good articles in the article section on the home page of this website about double closings. I would recommend that you contact your accountant and attorney, (any good real estate attorney will do) and find out what the laws of your state are regarding double/simultaneous closings.