BiggerPockets

Hey Guys
First time here, I LOVE the site.
I'll get right to the point.
I have flipped 4 houses, all recently, all in Central FL and all went well :)

I have two more I'm working on and I had some REO offers out there.
I got a third offer accepted but I do not have the manpower to do it and I'd rather do my other two well than three badly so I want to wholesale this one.

Here it is.

I put an offer on a 4/3.
My offer of $180K was accepted
The appraisal came back (ARV) at $370K
I advertised this as a wholesale deal at $220K and have people all over it.

NOW WHAT?

I know I can't assign it so I am going to do a double closing.
What steps do I take next?

Am I right here? (let's assume I have a buyer)

I go get my buyer to sign a purchase contract?
I get a deposit from him which goes to my agent for escrow?
I make sure the closing company already selected by the selling bank can do a double closing or if not I find one who will do a double closing as a courtesy closing?
We all go to closing, it double closes, I get paid?

Maybe I should have left out the guess questions.
Am I on the right track though?

I have a closing date on June 20th.

Any help would be very much appreciated. Oh, and do I have to pay any fees etc?

Thansk so much

Nick

Awesome, thanks Ryan. I'm glad I was " sorta kinda" on the right track.
Much appreciated, Oh, would I be correct in saying that I would be treating the profit on this as regular earned income and not some other more complicated thing?

And thanks for that too :)

Sorry but here's another part to it.

I just got emailed the settlement statement.
Do I now tell my RE agent, Hey here's the real buyer and just introduce the new buyer to the agent?

I'm not worried about the extra fees.
The title company doing the closing on behalf of the bank does not do double closings so rather than rock any boats, shall I just tell them that I'd like the package sent over to say ABC title and allow ABC to do the double closing? (I don't really want to request that I select the closing firm to the selling bank now that it's at this point)

Would I be right in saying that the actual selling bank basically thinks they are selling to me but on closing day they will see that Mr. X actually bought the property but pretty much says Oh well, we got paid, we don't care?

Thanks

The bank will see any profit you clear on the deal as their money. They're going to try to prevent you from taking that money

What?
If they have already accepted an offer why would they? Isn't that what wholesaling is all about?
Now I'm confused (and concerned)

Banks do not allow assignments of contract on REO's. This same topic has been discussed and answered in the REO forum before. Try a search to find it.

I personally " claim" to have double closed at least 3 REO's that I can think of. One was a HUD and 2 were normal lenders.

As Jason shared, it is very important (just as with an assignment) that your buyer's financing is either cash or cash equivalent. Cash equivalent being hard money or some type of commercial financing. Most types of conventional financing will have issues with a double closing or an assignment.

I wouldn't tell anyone except for your title agent that is doing the double closing about the double closing. The bank can't back out at this point, but there's no use ruffling feathers. The agent has nothing to do with it either.

Its not an assignment. You are doing two transactions on the same day. You are buying the property, and you are selling the property. You are the person buying the property with the first transaction, and you are the person selling the property with the second transaction.

On the closing day the bank IS selling YOU the property. You ARE the REAL buyer. Now on that same day you are selling it to someone else, but that does not affect the first transaction. The bank won't see you sold it the same day unless they went back and checked the deed records after everything is recorded, which they won't ever do because they don't care enough to do that.

The bank's title company? Are you talking about the actual title company or is that a local company doing a courtesy closing for the actual title company? It may be too late to change it without rocking the boat a little, but I would do whatever I could to change the actual title company or the courtesy closing company if the actual title company is not doing the closing.

If you can't do that, get financing, close it, and then resell it to your buyer as soon as your title agent will allow you. Some title agents will want the deed to be officially recorded before they will close you (which could take up to a week or so), and others will just need to see your first closing docs or will just call the first title company to verify the title transfer.