BiggerPockets

Can it be done?

If so how?

I was not sure of the legalities involved... might be different with different banks/lenders etc.

Thanks

Yes it can. In fact, you will need to deal directly with the seller in order to get them to agree on a short first. Here's how we handle it. Fill out a purchase contract like you normally would when doing a wholesale deal. Next, take that along with all the other documents the bank requires (including a pre-HUD from your title company) and submit them to the bank.

If you receive an approval letter from the bank, you will then send that over to your title company along with the assignment form to orchestrate the closing between the seller and your new buyer.

After closing takes place, that finalized HUD and paperwork will be forwarded back to the bank. As long as the preliminary numbers that were sent to the bank don't change, this isn't an issue. Think of it this way. As long as your title company approves the assignment, then you know it is a valid transaction. They will never do something that could get them in trouble.

Don't forget to make sure that your sales contract is assignable ~ learned that the hard way~. Whay pay retail? Wholesale Rocks!! Good Luck

No need to spend money on a double c lose if you set up the deal correctly in the first place. That is like taking money out of your pocket!!!

Robin

Terry,
I structure my deals the exact same way I do my regular deals. If you can be more specific with your question I may be able to give you a better, more specific answer.

Jon,
I put "My company name and or assigned" in the agreement of sale contract wording. Have not had problems with it.

Robin