What is legal?

2 Replies

Hello,

I've been searching for answers all morning, and been receiving different answers.

From my understanding:

Assigning contracts - I can only sell a property to a buyer for the same price I bought it; my profit is in the assignment fee. It is illegal to sell the property to a buyer for more than I purchased it for.

Double closing: I am using some sort of short term funding to purchase a property from a seller. I then sell it to a buyer, consequently.
Is it legal to buy a house for $50k and sell it for $65k in a double close?

If anyone could correct any misunderstandings, thank you.

@Leyla Simsek I do not know the laws in your state and what is and is not acceptable to do. What is or is not considered practicing RE without a license etc....

but I would like to applaud you for taking the initiative and actually doing some research on the legality of what your doing to make sure you are operating above board.

Many people do not do that.

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | Podcast Guest on Show #127

Assigning: the reason the end buyer's purchase price is the same as yours is because you are assigning the Same actual contract you executed withe seller. Therefore, of course the purchase price in the contract doesn't change. You make your money from the assignment fee you charge your buyer. With an assignment, you never actually Buy the property, you sell (assign) your Contract.

Double close: You actually buy it, and have a Separate purchase contract with your buyer. And yes, you can sell it for any price you want, because you own it, even if for only five minutes.

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