Multi Unit Double Closing Question - Posted by Steven

Posted by Steven on July 19, 2011 at 17:12:07:

Thanks for the reply.
But I would do the double closings, that way the end buyer doesn’t see what I paid for the property.

Example
Asking $3,000,000
Is that the best you can do?
No $2,200,000 is the best he can do
There is $800,000 wacked off the price
I sell to end buyer for $2,450,000 (I added $250,000)

Now the seller doesn’t get mad because he could have sold it for more.
And the end buyer doesn’t get mad thinking he could have got it for less.
So I would pay for the double closings through transactional funding.

That is the way I would like to do it.

I just needed some of the questions answered.

Thanks for your input.
Steven-
skl.simplyhot@gmail.com

Multi Unit Double Closing Question - Posted by Steven

Posted by Steven on July 09, 2011 at 13:06:45:

Double Closing Questions:

1- I have a contract from Seller “A”, to Me “B”.
But End Buyer “C” sees that I am not on the title, (He did his due diligence) how do you deal with the End Buyer regarding me not being on title?

2- How do you prevent an End Buyer who attempts to “go around” on your deals, with multi unit apartments?

3- Seller is in another state, and End Buyer is in yet another state, since the Double Closing has to take place and close in the same Title/Escrow/Attorney, how do you deal with it so everything goes smoothly, and every one gets paid?

Thanks for your answers and time
Steven
skl.simplyhot@gmail.com

Re: Multi Unit Double Closing Question - Posted by ray@lcorn

Posted by ray@lcorn on July 16, 2011 at 10:31:09:

Steven,

Without knowing the details of how you set the deal up, my suggestion would be an assignment of the contract for a fee.

An assignment avoids the double closing, usually saves on transaction costs (depending on state regs for recording fees), and makes the title company much happier because it eliminates the need for a gap policy.

Have your attorney prepare an assignment from you to the end-buyer that specifies the fee, terms and conditions of the assignment, including a release of all obligations under the contract. You and the buyer execute the assignment, fee is paid, then the end-buyer proceeds to closing the original contract.

ray