Simultaneous Closing In Austin

I have a duplex under contract. It is bank owned right now and I have a hard money lender set up to provide me with the financing for the rehab, carrying costs and purchase. I need to bring $11,000 +/- to closing to cover the balance not covered by the lender. I am trying to line up another investor to loan me this money and carry a second lien position, so my costs would only be the earnest money($500). There is a huge potential profit on the backend after repairs, $50,000 is my conservative estimate.

I am thinking of trying to flip this to another investor since I may find myself in a bit of a time crunch here soon with other projects and my question is this:

When I find a buyer, can I close with the buyer first and then close with the seller an hour or two later and profit from the difference? If so, then do I still need the hard money lender? Do I still need any of the money for closing costs? Has anyone in Austin used Texas American Title for this type of transaction? ???



Howdy Rob:

If your buyer has their own financing they will not need your hard money lender. Also you may be able to sell the deal including the hard money loan deal in place and ready to close to another investor (even me). You can sell it first and then buy it as it is all held in escrow until funding which could take a day or so.

Have you had any luck borrowing the second lien money. I just did the exact same thing a few weeks ago on a 31 unit deal. Strange that we are having almost the same events happening almost at the same time. One question is if it is such a sweet deal why are you required to bring so much to the table to close the deal. What % is the hard money lender loaning on the deal.