OK, I’ve been doing tons of research, I have the phones ringing and I need help. Lately I’ve been sending my SS’s to a realtor friend and he pays me a percentage. But I’m missing the boat on much larger profit. So from an individual side I want to do the SS myself.
My confusion is if I’m the one doing the SS and want to wholesale it out to a end investor, how is this DONE?
Double close?Then do I put myself on the purchase contract to lender?
If so I have to show proof of funds right? I don’t want to try and qualify for a loan.
Charge on HUD-1? What kind of fee, how much will lender accept, etc…
Can they 1099 me or do I have to put under a LLC?
One way is to use a double close. You have a contract with the lender as the buyer and then you have a contract with YOUR buyer as the seller. As far as proof of funds, find a hard money lender in your area to provide you one. It’s usually not too hard to get.
I’m about to receive two acceptance letters from banks I’ve negotiated short-sales with, but I’m not able to find a title co that is willing to do the double close anymore. They want to wait a day after the close, or put the entire transaction on 1 HUD.
Not only that, but will I go on title? Does the end buyers lender care if I go on title for a brief period of time? Next, doesn’t the end buyer’s lender want a payoff letter?
Title Co’s seem like they won’t allow the money from the 2nd close to fund the 1st close.
I’m almost out of ideas. Any help would be greatly appreciated. Thanks!
In response to JoeBoo700, I may have a title company that is willing to take this on. I have been told by my escrow officer that he knows of a title company that is not afraid of double/simultaneous closings. I too am looking for a way to do these. I have been getting mixed answers. He is set up for a lunch meeting with the title rep today,
What you guys may want to use is a private lender to fund your part of the purchase. There should be no application, no credit check, no employment/income/asset verifications, and no property valuation. Simply put, you get the funds just for several hours. Enough time for your end buyer to close. The private lender shoudl fund 100% of the purchase price and costs to you should come out of your profits. The key is that the end buyer MUST have his financing lined up and both parties have to close at the same title company.