Posted by michaela-ATL on August 08, 2002 at 19:50:05:
you may want to make the determination based on the profit spread. if you only make 3k, no problem assigning the contract. if you make 20k on a deal, you may take the risk, that the buyer or seller will walk, if they know all the numbers. so, just keep that in mind.
just my thoughts
Houserookie, JohnBoy, Ron **** and others that - Posted by Dave (MN)
Posted by Dave (MN) on August 08, 2002 at 19:18:28:
have done this please help.
I want to know what’s the best way to do flips in today’s market. Is it better to do double closings using two purchase agreements one between me and the seller and another between me and the buyer.
Or a purchase agreement and then assigning to another buyer for a smaller fee?
Or an option or purchase agreement between me and the seller and then charge a contract release fee to let seller sell directly to my buyer? Where and what would I write on the contract to guarantee that the seller will pay me the contract release fee? What do I write?
Thanks for everyone’s help.
Here’s my side… - Posted by Houserookie
Posted by Houserookie on August 09, 2002 at 13:43:15:
I handle mostly higher priced homes and have charged management fee using land trusts.
You can do double closings if you can find lenders that will fund homes with little or no seasoning.
Assignments are good if the profit is small and you feel the buyer can front the cash.
There is nothing to write if you use a land trust and mangement fee. For forms to handle assignments go to: legalwiz.com or dealsmakercafe.com. Download the forms for free.
Next to trust management fee I prefer the contract cancellation fee route. Let the seller buy you out of the contract. Write on your purchase agreement or option, “Seller has agreed to pay buyer $xxxxxx to cancel this agreement” then set it up for closing.
The title company can handle the rest.
If you want to be safe, record a performance mortgage for the option or purchase agreement on the same day seller agrees to buy you out of the contract. Whatever your profit is record that amount on performance mortgage.
Good luck to ya.