Posted by chris on March 30, 2000 at 02:38:27:
In the How To articles section on this site there are two articles on flipping.
Flipping (crash course) - Posted by Zee
Posted by Zee on March 30, 2000 at 02:07:00:
What is the basic process by which an investor “flips”, or wholesales a deal? I only recently read about this approach here, but am unsure of the details.
I just tied-up a small building lot in a sub-division which, even after closing costs, I believe I am buying at 59 cents on the dollar.
I have no desire to hold and build something. The plan all along was to find a retail buyer and pocket some cash profit.
Closing is in five weeks. In a flip I understand I won’t ever take title, and there is something about a double closing? I read it is my right to purchase that I’d be selling the buyer, but how do I get paid?
Do I sell this right at a retail price then let the escrow agent pass title to my buyer instead of me?
I have read an excellent book on the escrow process, but it didn’t mention this creative aproach.
Re: Flipping (crash course) - Posted by KW
Posted by KW on March 31, 2000 at 23:08:53:
Hi Zee,
I hope I can help. This information I am passing on to you was given to me almost a month ago about flipping using assigning contracts and soforth. So here goes: How to tie up a deal and assign your interests to an investor?
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To tie tie up the seller’s property you simply enter escrow.
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Run an ad to find your investor or meet one at a local REI club.
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To have a simultaneous close you ask the closing agent to sell the property to you(the Buyer), then to the investor.
You could tie up the property with either an option or purchase contract. Your weasel clause could state that the purchase contract is "subject to your investor’s (partner’s) inspection and approval.
Well Zee this all the information that I could think to give you so far I hope this can help a little.
Keep in Touch
KW