This may seem like a stupid question…
I know what wholesaling is. I know what a preforeclosure is. And, if you have carried the preforeclosure to the point of negotiating the deal with the bank. Then you wholesale your negotiated deal, does the bank have to accept the new buyer?
Do you do a simultaneous close? Anyone have any ideas?
If the wholesale buyer is borrowing the funds from the same bank, they would have to be able to qualify for the loan. If they’re coming in with cash or have their own financing in place, it will not matter to the selling bank.
You can set it up as a double closing through most title companies or law offices and they will cut you a separate check for your fee. Some states do these differently.
For example: You have negotiated a short sale of $100,000 to close on Oct. 30, 2007 and have subsequently sold to another buyer for $125,000. Just set up the closing on that transaction for the same day with all funds to be placed in escrow with the title company. The title company would receive the funds from your buyer, cut a check to the bank, then cut a check for the balance minus fees to you.
Good luck investing! :biggrin
You could do a double close using a land trust. Not the easiest thing to pull off. All of your team members must be on the same page. Now if you are doing a wholesale deal with an investor then the investor just comes to closing with cash and you can do a double close or just assign the deal.
Best way is to set it up with a trust in the 1st place.