Posted by RonH(MD) on September 23, 2004 at 08:28:08:
Matt, maybe I’m missing something here, but why does should your end buyer care what you are making off of the deal, It’s not there house? They are trying to get into this new home.
Thanks,
RonH(MD)
Simultaneous Closing - Buyers Offer - Posted by Dave-Fl
Posted by Dave-Fl on May 19, 2004 at 16:51:24:
I have a property under contract and I will be doing a simultaneous closing.
How do I have my new buyer write up the purchase agreement? Do they make the offer to myself? or “owner of record”?
Re: Simultaneous Closing - Buyers Offer - Posted by Kristine-CA
Posted by Kristine-CA on May 19, 2004 at 16:59:18:
Dave: There are a few different ways to get paid in your situation. One way is a double close. This is two escrows. The one with the seller and you as the buyer, the other with you as the seller and your new buyer. I suggest that you write the contract, not the buyer. The buyer makes the offer to you, since you are the seller you are setting the price. It doesn’t usually go over too well when the new buyer offers more to the seller, only to find out that they won’t be getting all that money.
There are other ways to get paid on a flip as well. You may want to do some reading about assigning, double closes, simul closes in the archives on this site. Hope this helps. Sincerely, Kristine
Re: Simultaneous Closing - Buyers Offer - Posted by Dave-Fl
Posted by Dave-Fl on May 19, 2004 at 17:07:12:
Thanks for the quick reply.
I understand about assigning and have considered assigning this but a $35K payday probably won’t sit well with the seller or new buyer so I’m scratching that one.
I am going to do a simultaneous close and wasn’t sure how to have the contract drawn up from my new buyers. As you wrote in your reply I will write up the offer for the new buyers with me as the seller.
Thanks again,
Dave-Fl
Re: Simultaneous Closing - Buyers Offer - Posted by Kristine-CA
Posted by Kristine-CA on May 19, 2004 at 17:17:25:
Dave-Fl: It sounds like this is your first time with double closes. Please feel free to disregard if the following doesn’t apply.d
Double/simul closes require the assistance of your escrow company or closing attorney. If you are planning to use your buyers funds to fund your purchase, you will want to make sure that the closing agent on your purchase will agree to this–before you go into escrow on either contract. Sincerely, Kristine
Re: Simultaneous Closing - Buyers Offer - Posted by B.L.Renfrow
Posted by B.L.Renfrow on May 19, 2004 at 17:15:08:
One thing you need to find out immediately is whether your buyer’s lender, if they are using one, has a title seasoning requirement. If they do, you don’t want to wait until you get to the closing table to find out it’s not going to work.
If your buyer is using cash, of course it doesn’t matter. If they are using a subprime lender, it certainly will be an issue. If they are “A” credit borrowers, it may or may not be a problem.
The best advice is to communicate with their lender or mortgage broker ASAP and find out. If the lender does have a seasoning requirement, they will either need to find a different lender or you will need to find another way to get paid.
Brian (NY)
Re: Simultaneous Closing - Buyers Offer - Posted by Bill-OK
Posted by Bill-OK on December 08, 2004 at 08:25:42:
Brian -
“One thing you need to find out immediately is whether your buyer’s lender, if they are using one, has a title seasoning requirement. If they do, you don’t want to wait until you get to the closing table to find out it’s not going to work.”
Can you explain in more detail about the seasoning issue? I’m just trying to learn about the “double close” process and was lost when reading about the seasoning thing.
Thanks,
Bill
Re: Simultaneous Closing - Buyers Offer - Posted by MattFL
Posted by MattFL on May 19, 2004 at 22:04:46:
Excellent point Brian. One of the biggest problems we run into when doing simultaneuos closings is our end buyers’ lender. Make sure before you agree to sell to someone else you know exactly how they plan to pay for the property. I get so many investors that tell me cash only later to find out that they are trying to get a conventional mortgage. You have to be very clear on this because how your end buyer plans to close dictates how you have to set up the deal.
-Matt
Re: Simultaneous Closing - Buyers Offer - Posted by D -TX
Posted by D -TX on June 29, 2004 at 24:10:59:
If the buyers lender a title seasoning requirement, how else could you structure the deal so you would get paid?
Re: Simultaneous Closing - Buyers Offer - Posted by MattFL
Posted by MattFL on June 29, 2004 at 08:35:25:
Either just assign the original contract to your new buyer or create a new contract between the original seller and your new buyer with a fee paid to you for the difference. I know there are other ways around it, but I haven’t had the need to use anything else. Good luck.
-Matt