Real Estate Consultant · Charlotte, NC · Member since 2009 · 65 posts · 14 votes
We have a deal in place with a residential seller, we also have an end buyer acquiring a conventional mortgage, can we assign the deal to the end buyer and do a simultaneous closing?
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
17y
you'll need to do a double close and use your own funds or use transaction funding for the A-B side and make sure the end buyers lender doesn't have any title seasoning issues
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
17y
you'll need to do a double close and use your own funds or use transaction funding for the A-B side and make sure the end buyers lender doesn't have any title seasoning issues
Real Estate Investor · Indianapolis, IN · Member since 2009 · 161 posts · 46 votes
17y
I just killed a deal that I was JVing. I have the property and another investor brought the buyer. I was told that there would be a portfolio lender and that no seasoning was required. However, not taking anyone Else's word I called the lender and they are under Fannie Mae guidelines and do have seasoning requirements. I had to put the Kibosh on it... It has to be a none seasoning lender like Nick said...
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
17y
Hang on. What do you mean by a "residential seller"? If you mean an individual, then you should be able to do an assignment. Its banks that will refuse assignments.
That said, the buyer's conventional lender may have an issue with the assignment fee. They may use the price without the fee as the value for making the loan.
With an assignment, you should not have any seasoning issue, since you're never on title. Well, unless the seller has only owned it a short time.
Real Estate Consultant · Charlotte, NC · Member since 2009 · 65 posts · 14 votes
17y
The seller has owned the property for several years and is on board. I guess my question actually is with a seller that we don't actually know will the end buyers lender have an issue with an assignment. Sorry for the confusion...
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
17y
No way to know without actually asking. Lenders don't have problems with commissions, but somehow do have problems with assignment fees. The assignment itself should not be a problem. The buyer is buying from the seller. Since you're never on title, there is no seasoning issue. Its just the fee that may be a sticking point. Can the buyer pay your fee plus the down payment?
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
17y
you know after I re-read the post I don't know why I thought you were referring to a short sale. I was wondering why Jon was like 'wait a minute' but now I understand, my bad
Real Estate Investor · Pittsburg, PA · Member since 2009 · 64 posts · 6 votes
17y
From my experience these type of deals never go through because the lenders don't want anybody else making money but them, that's why the economy is where it is today.
The only way to do these type of deals is with cash buyers.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
17y
Originally posted by Herbster:
Another wait a minute. Can't you just release your agreement at closing for your fee? Although I don't know what kind of agreement you have. Herbster
The idea that Herbster is putting forth here is really one to note. In PA, the Dept of Revenue decreed that they will be collecting transfer taxes on contract assignments, from the middleman as well as the end buyer - meaning two separate transfer taxes. One of the ways to circumvent that is to use a "conditional release of contract", where the release stipulates what the seller must do to release the original contract (usually the release terms are to agree to execute a contract with end buyer, for specific amount); so, you would have no more assignment fee, and the release fee can show up on the HUD1 as paid by seller at closing - thus buyer's lender has no care about that.
Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
17y
I've only done this once and it was with cash, but cant you just get the fee upfront from the buyer and if you wrote the offer blank smith and or assigns then you just assign it to the seller. They would need to have the cash upfront and it would not be able to come from the loan I would think.