Investor · Santa Ynez, CA · Member since 2008 · 375 posts · 175 votes
Hi, I'm looking for a friendly and savvy company that has worked with investors in the past and will do double close and assignments.
Any recommendations is appreciated!
Hi Allen, I live in the Fresno area but am not doing any investing in CA. However, I will get in contact with a few people from our local investors club here and see who they say is decent to work with. Best of luck, and I will let you know ASAP when I find out. Take care!
Sabrina Laplante
Frank:
Thanks for your thoughts. I have looked at a lot of duplexes as well and because of the large amounts of improvements and the overall condition, this property warrants a higher price. It actually appraised for $150k. And low rents are a good way to get more income by raising rents to market. This one is slightly higher than the surrounding duplexes but not like it's 25% higher.
Sabrina:
Thanks very much for the help! It's appreciated.
@Account Closed Maybe not in Dallas, but here in Fresno, CA I do them regularly and have never had a problem with Fidelity. Title companies operate different from state to state.
If you let the end buyer know you will use their funds to close the A to B transaction, then no harm but if the end buyer questioned it, then Fidelity Error and Omission would get to involve, and Fidelity could lose their license for misuse of funds and then if you are the one that brought the deal you are right in the middle of it. To be on the safe side pay a few dollars for a transactional lender to close A to B.
No transactional lender needed. There is a double escrow disclosure that Fidelity attaches to the closing docs. They read as follows:
1. DISCLOSURE-CONCURRENT RESALE: Please be informed that _______________ , Buyer, has opened an escrow with for the concurrent resale of all or a portion of the property that is the subject of this escrow. This is to advise that the proceeds of the sale will be used towards the purchase of the property in this escrow. Therefore, Fidelity National Title Company is authorized and instructed to record documents required in this transaction even though all of Buyer's funds will not have been deposited into this escrow. Fidelity National Title Company is instructed to transfer the remainder of Buyer's funds upon the concurrent recordation of the resale transaction.
2. DISCLOSURE - DOUBLE ESCROW (INITIAL ACQUISITION): The closing of this escrow is subject to and contingent upon the concurrent closing of Escrow No. ("Resale Escrow"), wherein Buyer herein is selling the subject property at an increased purchase price.
Seller acknowledges that proceeds from the Resale Escrow transactions are the source of all or part of the purchase price herein. Escrow Holder is authorized and instructed to record all appropriate documents regarding this escrow, even though funds necessary to consummate this transaction will not be transferred to this escrow until after such documents are recorded.
With full knowledge of the foregoing, the parties hereto authorize and instruct Escrow Holder to proceed with the closing of this escrow pursuant to instructions relative thereto. The Parties further agree that Escrow Holder shall have no liability for and shall be held harmless from any matter resulting from Escrow Holder's compliance with these instructions.
3. DISCLOSURE - DOUBLE ESCROW (RESALE OF ACQUISITION): The closing of this escrow is subject to and contingent upon the concurrent closing of Escrow No. ("Acquisition Escrow"), wherein Seller herein is acquiring the subject property at a lesser purchase price.
Buyer is aware that all or a portion of the proceeds from this transaction are the source of all or a portion of the purchase price in the Acquisition Escrow. Escrow Holder is authorized and instructed to transfer funds from Seller's proceeds in this escrow to the Acquisition Escrow sufficient for purchase of the subject property and closing of the Acquisition Escrow.
With full knowledge of the foregoing, the parties hereto, including any Lender providing new financing for the acquisition of the subject property, authorize and instruct Escrow Holder to proceed with the closing of this escrow pursuant to instructions relative thereto. The Parties further agree that Escrow Holder shall have no liability for and shall be held harmless from any matter resulting from Escrow Holder's compliance with these instructions.