What Contract Do I Use To Flip A Deal To An FHA Buyer ?

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1

I got a property in Florida under contract from my friend at one price using an option to purchase agreement.

I have an FHA Buyer that wants to buy the property. Can I also use the option to purchase agreement with my FHA buyer or do I have to use a standard far bar contract?

My seller and buyer will both be using the same title co. Can I just give the buyer an option to purchase agreement to lock in the deal and forward it to the title co and they can change the paperwork later if needed.

Also my seller knows the selling price that the buyer is paying so he is aware and approved of my profit. I really would not need to do a double closing but I think I will or would I just do the paperwork directly with the seller and buyer and I then have the seller pay me via joint venture agreement?

any ideas or thoughts on the best way to wrap this up.

2

Hi,

FHA loans require a full written contract as a home inspection and termite inspection is required for lending.

You will have to use transactional funding as otherwise the buyer will have to have your markup (Profits) in cash as your fee can not be added to the HUD1. (Difference between the two agreements in cash.)

A joint venture agreement would solve most of this and you would not need to pay for transactional funding! You will need to find out from the escrow / title officer how this is best done and whether it can be worked to pay you from proceeds at closing?

            GR
3

will do. thanks again.