Posted by Houserookie on March 06, 2003 at 16:44:33:
This is used to payoff the investor so that the seller can sell to the investor’s buyer directly.
This is an effective tool and avoids double closing and assignments. You will need an attorney to help on the first deal.
Cheerz,
Austin
Flipping!! Question!! Contracts and Closing - Posted by Randy Taylor
Posted by Randy Taylor on March 03, 2003 at 20:04:18:
Can anyone tell me what paperwork(contracts) are necessary for a flip deal (anything other than purchase contract and assign??) Also, how far out do you set the close
Re: Flipping!! Question!! Contracts and Closing - Posted by Kristine-CA
Posted by Kristine-CA on March 04, 2003 at 24:07:03:
Randy Taylor: the only paperwork I’ve used is a purchase contract and an assignment doc. Or two purchase contracts–one to buy and one to sell for a double close.
Set the the close as far out as you can, in my opinion. You can always close earlier if you have a buyer that is ready to go. But where I am appraisals and other paperwork are so backed up that 30 days is not always enough to time to close a deal.
Hope this helps. Sincerely, Kristine
Re: Flipping!! Question!! Contracts and Closing - Posted by js-Indianapolis
Posted by js-Indianapolis on March 04, 2003 at 13:33:48:
Do you always get paid at closing? Ever get someone brave enough to pay your assignment fee, and trust everything goes well through the close?
Re: Flipping!! Question!! Contracts and Closing - Posted by Kristine-CAq
Posted by Kristine-CAq on March 04, 2003 at 21:47:36:
JS: on assignments (all two of them) I got paid at the time of assignments. One closing went fine. One closing didn’t happen. I refunded part of the assignment fee to my buyer.
Sincerely, Kristine
Re: Flipping!! Question!! Contracts and Closing - Posted by js-Indianapolis
Posted by js-Indianapolis on March 05, 2003 at 02:02:17:
Very interesting indeed. I just had assumed no one in their right mind would pay an assignment fee 'til the deal was done. Perhaps I’ll now assume from your deals half the people in California are out of their mind.
Thanks for the info.
Re: Flipping!! Question!! Contracts and Closing - Posted by Kristine-CA
Posted by Kristine-CA on March 05, 2003 at 02:29:50:
JS: Indeed, half of Californians are out of their mind–because we know that we are not our minds and have better places to be.
However, I’m worried about your math mind. Where do you get half of CA from my deals? If you were to use my number of assignments vs. double closes vs. out purchases, the numbers are 2 + 4 + 2 which equals 8. Which means assignments represent 25% of my little deals. Can’t speak for anyone else, but for me assignments are indeed much tougher to pull off.
Sincerely, Kristine
Re: Flipping!! Question!! Contracts and Closing - Posted by js-Indianapolis
Posted by js-Indianapolis on March 05, 2003 at 16:53:49:
2 assignments, 1 person paid up front. Half of the people in CA are crazy. Where’s the fuzzy math in that? I think people are crazy out in the land of “Fruits and Nuts” for other reasons, I just used that to justify it. You like the way I create my reality?
All joking aside, I appreciate you letting me know how your deals went. I didn’t know what the breakdown was/is. I’m working towards assigning a couple contracts, and looks like I’m going to have to double close on the other. Sounds like the double close might be my best bet.
I hear from some they’re a mess, others say they’re simple, and even preferred. Suppose I shall find out soon. Hey, ever have any trouble if or when people find out how much you made, and want to whine about it, afterwards?
Re: Flipping!! Question!! Contracts and Closing - Posted by Kristine-CA
Posted by Kristine-CA on March 06, 2003 at 11:20:29:
JS: actually: 2 assignments, both paid cash at the time of assignment (upfront)–so all of CA is a fruit and nut mix. I took pity on one of the buyers when they couldn’t get lender funds and refunded part of the assignment.
Sincerely, Kristine
Re: Flipping!! Question!! Contracts and Closing - Posted by Houserookie
Posted by Houserookie on March 05, 2003 at 18:19:48:
JS,
There is no one answer for all in the flipping business. Your preparation should include
the following closing strategies.
Assignment
Double closing
contract cancellation
land trust
Without the necessary preparation you will be get upset when things don’t close and get discouraged.
Many newbies can become just as smart as the gurus on this board. The main difference is preparation. The gurus have all the tools ready for the close. Newbies don’t.
Newbies are some of the hardest working and most determined at first. But they quit when they become discouraged.
Cheerz,
Austin
Re: Flipping!! Question!! Contracts and Closing - Posted by keith hutson
Posted by keith hutson on March 05, 2003 at 23:40:44:
The forms, I understand the contract, assignment and land trust, what is the contract cancellation form for?
Thanks
KHutson