I have a question that I’ve seen asked by several other “newbies” such as myself, with varying answers. In doing a short sale with a double closing, how do I:
Avoid getting a loan for the amount of my purchase, but in effect use my buyers money to also fund my purchase (or is this even possible)
Accomplish this without getting into hot water with the bank when they see the another buyer, which may then stop the entire sale from completing.
If I need to fully fund my purchase with an HML, then the cost of this loan will likely wipe any profits I make on the deal. Of course I realize I can’t assign the contract because the bank won’t allow that. I’ve also been told it depends on the Title company, some are more adept at double closings than others. Not sure if it matters, but I’m in South Florida - although I doubt things are much different here on a legal perspective from other areas. Thanks in advance for any advice…
I learned that lesson on my 1st SS.
ALWAYS have private money, not hard money lined up. Obvoiusly, if your buyer doesn’t come through, you didn’t waste everybody’s time working on a deal that you can’t pull off. If the Atty or Title Co allows the double close, offer your lender something for their time to keep them happy. Hard money won’t be as happy about making a couple grand for not loaning their money out as a private investor would.
Sure, it ups your costs, but factor that into your offer with to the bank…
Thanks, CityScape! As you say, I will just factor that into my offer so I don’t lose any (or much!) profit on the deal. As long as we all make money, everybody is happy, right?
Can anyone tell me how to come by getting a Net Sheet. I have called lots of title company to see can I get a Net Sheet, but all of them said that I can’t get a Net Sheet unless I’m closing a deal at their company. So Please help with the Net Sheet, the only thing stopping my first SS.
Go to www.easyhud.com. They should have what you need or can get it for you.