Posted by Greg in Dallas on November 04, 2002 at 13:04:07:
You’ve got the concept down pretty good. However there are many ways to close a flip. I would recommend that you contact your title company and ask them how they hand flips. If they give you that “question mark” look then just say, “I’ve place a property under contract and plan to resell the property to another buyer before I close with my seller. It’s also referred to as a simultaneous close or an assignment of contract” The difference is that for a simultaneous close you’ll have two separate contracts and like in your example, when you sell to your investor you’ll write a separate contract for 65K with you being the seller and the investor being the buyer. Just take both contracts to the same title company and tell them what you wan to do. If they say, "that’s illegal or something dufus like that, then go down the road to the next title company or better yet, check with your local investors and ask them who they’re using and then go there. Also if you do a simultaneous close be sure to ask the title company for a discount on the second closing, since they’re not actually doing double the effort, just drawing up two sets of papers.
PS. Go through the “How To Articles” and you’re sure to find at least 2-3 articles that will further clarify flipping for you.
Hope this helps,
Greg in Dallas