I just found out I’ve been “birddoggin” for months for free! I am attempting to get into the real estate investment business and the position that seems to best my situation is a “wholesaler”. I know what makes a good deal also I have several investor and realtor contacts.
I found a deal for a 4 suiter asking 50k, AV 97k-102k! All units currently under lease! The investor I am working under (once again) is allowing his personal issues to interfere with business and with such an excellent investment opportunity I hate to lose the deal (or not benefit from my findings).
So,I would like to flip this property myself but I need step by step-as -specific as you can expalin , what i need to do to flip. If I’m correct,
-I need to get the seller to sign a lease/option
-Immediatly match with a cash purchasing invester (or end buyer)
-Have end buyer sign a Purchase Agreement??(and a Assignment of Contract??)
-Then take the contract from seller and contracts from end buyer to a title co. fimiliar with a double close??
And back to my original question, what is the difference between an Assignment and Double close? And when is it appropiate to use?
With either option how do I ensure that I will be paid?(please be specific)
Not sure all the details of what you are trying to do, or why you would want a lease/option contract unless you were planning to hold it for a while until you find a buyer.
Instead you can get the seller to agree to a contract (that is assignable) and then assign that contract to a buyer for a fee. The Assignment is a one page document that just says the person is taking over your rights in the purchase.
A double close is an option, but I wouldn’t recommend it on your first deal and not many title companies do that anymore.
Lease Option: Rental agreement that includes right to purchase property.
Double Close: Closing happens when property ownership titles are exchanged for compensation (purchase price). A Double Closing is typically used when buyer one is immediately selling the new purchasee house to someone else (buyer 2). The closings are scheduled for roughly the same time to allow first buyer to use second buyers money to close initial purchase. When all the dust settles - the house has sold twice, and the title has been moved from original owner to buyer 1 (you) to buyer 2 - all without buyer 1 having to come up with any money.
Both are ways to make money in real estate. They are different techniques that require little monies to get a deal done.
THE 1ST THING YOU MUST DO IS GET IT UNDER CONTRACT! DO NOT WASTE ANY TIME! Get comps for ARV from an RE Agent to factor it into your contract price.
2nd: Give yourself an out in the contract, as well as a reasonable time for closing. If you can’t flip it, then the price is probably too high. So if the Seller won’t negotiate a lower price, then you can get out of the contract.
3rd: Also, find a Title Company or Attorney that does double closings. This provides flexibility w/ both you & potential buyers.
4th: Advertise to your buyer’s list. Don’t have an extensive buyer’s list? Get one. That’s why you give yourself a reasonable time to close.
5th: Find the buyer, close the transaction, & collect your check fron the Title Company.
Double closings are not a big deal if the buyer is bringing cash & not financing. With financing, SOME lenders may question Title seasoning, thus causing the Title Co to hold up the deal to address this issue.
I flipped a property to an RE Agent/Investor that wanted a double closing.
If you want to make >$10K on a deal, a double closing might also be a good option, so other investors won’t lowball you on an assignment.
With double closes, the buyer has to put down earnest $, which binds the contract. I’ve heard horror stories of buyers for assignments not showing up at closing.