Posted by ER on June 29, 2001 at 02:17:40:
I am having the same difficulties with SIMO’s down here in Miami, I will
appreciate all the information you can provide me.
Ernesto
Flip/Simultaneous Title Seasoning Issues - Posted by Jay
Posted by Jay on June 25, 2001 at 16:18:12:
My question is…when I enter into the contract to purchase for 80K with my Seller and I simultaneously enter into the new contract to sell it for 100K with my Buyer, and the Buyer has 5K down and wants that houe and is approved through the B/C Mortgage Co…how do I modify my existing contracts and get the Buyer and Seller on the same contract to submit to the Lender and not get "cut out"of my 20K profit and most importantly, not trick anyone involved(including the Lender)?
What language in the contracts do I use and how do I try and keep the greed factor from hitting the Seller once he is aware of my profit potential and “force” him to follow through on the original deal at 80K?
I know about performance mortgages amd I know that the assignment is possible but in this scenario the difference (20K) is too great for the Buyer to come up with and it is too much that the Seller would not “allow” me to make… my idea is that a Power of Attorney is one way but what would my reason/excuse be to the Seller as to why he has to give me one and how would I word it in the Contracts.
Any thoughts???
Re: Flip/Simultaneous Title Seasoning Issues - Posted by James
Posted by James on July 05, 2001 at 22:03:49:
You can sell the property in the original sellers name for the full sale price. However you must make sure they understand the delema. In addition they will need to agree to only accept their 80K regardless of your profit. If they are motivated, it wont be a problem. You also get them to agree to allow you to file a performance lien on the property for your interest in the property. You shouldnt file however, because it will raise question in the banks mind. Remember to get everything in writing. A one page doc will cover you. I have done a number of these types of deals. They are very lucrative and pretty fun. Feel free to email me with additional questions
Re: Flip/Simultaneous Title Seasoning Issues - Posted by Terry (IN)
Posted by Terry (IN) on June 26, 2001 at 08:50:14:
Jay,
C Phillips (below) has good advice. In some areas of the country, however, it’s becoming increasingly difficult to locate a mortgage broker who will do a simultaneous close. The secret, as she has discovered, is to find a good mortgage broker and title company to work with. If you can’t find a mortgage broker in your area to work with, email me. I might be able to help.
Terry(IN)
Re: Flip/Simultaneous Title Seasoning Issues - Posted by C Phillips
Posted by C Phillips on June 25, 2001 at 18:45:17:
I understand your concern. For you to make sure you are not tricking anyone and to make sure the process goes smoothly. You, first find a mortgage company that has lenders that lend to buyers buying a property that has not been owned by you more than 12 months. Second, find a title company that does the simultaneous close. The lender only sees the contract that you and the new buyer have signed and the seller only sees the contract you and the seller agreed upon. All monies exchange hands in the title company’s office and you and the title company are the only ones who know how much you really made off this deal.
I do flips and simultaneous closings all the time and this process is completely legal. Don’t feel guilty for knowing a little more than your buyer and seller. That is why you are in this business!! Thank God for the US of A!