BiggerPockets

Hey guys, I'm working on a deal and need some help. Got a call today from another wholesaler who has a property under contract for $175k (short sale). ARV is $291k. About $10k in repairs or less needed. Even though it is a short sale, this contract IS assignable BUT agent said that the end buyer (I have the end buyers) cannot purchase the property for more than the contract price of $175k. However, the end buyer can pay us in another form. Wholesaler called me because I have end buyers and his money is all tied up in a deal so he has no earnest money which is due by tomorrow. He wanted to use my end buyer's earnest money and I can't get ahold of them because it's so late but I have looked at the deal and there is a lot on the table so I would like to put the $1k earnest money up to be part of the deal.

He made a contract for my earnest money deposit which I haven't signed yet until tomorrow morning saying that I would loan the $1k and it's due back by or before 9/18 and has interest and a higher interest rate if not paid by that date. I just want to make sure that I'm covered whether the property closes or not and that i get my $1k back. What do you think?

He has a partner and they have an S corp which they put their offers in with. I have my own LLC and I'm trying to figure out how I could partner in a way that if my end buyer comes through I get x amt of dollars or %. I don't know what contract to use or where to find one. I have a simple finder's fee agreement which makes good sense to me and allows me to find a buyer and collect X interest or X fee. Should I just use this?

Thanks for your help!

ok so i talked to a title company today and she said just dont call it a double closing here in Cali because people run from it. You can do a Simo-close and some will do a back to back but wait 48 hrs before the second close so its hard on some transactional funding places because they want it instant.

she said you can have your end buyer pay the $175k because its a shortsale and they get tricky even though its assignable. We would have the end buyer fund on a note the 175k to purchase the property and already have the second contract worked out at say 197k. the remainding 22k would be in the other escrow. So when the first one closes either into your name, llc, or land trust, then you would let the end buyer have a 175k credit or however much toward the property, and the other 22k will be dispersed to your 3 wholesalers.

something like this. does this sound right to anyone as far as everyone getting paid?

she also mentioned the short term capital gains but they said you can itemize it with the closing costs and all that and pay like 9% or something? Confused on that.