Hello gang, I'm just starting out in the fascinated world of RE investment, I'm all for thinking outside the box so I have a question for you guys to see if this might work. I'm looking to purchase a home in New York for about 250 K or under of course, these properties need a little bit of work but might sell for 3 to 350 K depending how much u invest, I wonder if I might be able to contact my real estate buddy so he can find me deals of this sort, talk to the seller or sellers agent and see if we can work a deal where he can sell me the property, I fix it, get a buyer and have a closing for both buyer n seller, at same time, would that prevent me double closing costs? I know all the planets have to align but there would b stipulations on contract. I also know home has to sell cheaper for a fast buck so I may not make a lot but 5-10,000 is better than nothing. Tnx
@Cris Agui Unfortunately, no. If I understand you correctly, you would like to purchase a home through Seller#1 (you being Buyer#1), and while you are in the process of closing that deal (in about a months time), you fix up the property and find a Buyer#2 (and you being Seller#2)? And then you become the middle man at the closing, and essentially Buyer#2 buys directly from Seller#1, and you get the remaining balance?
This would mean that you would need to begin rehabbing while the property is still under contract. My head hurts from all of the scenarios as to how this would turn bad. Someone gets hurt in the rehab process... whose insurance get slammed? You find mold or foundation issues... who covers the cost? You don't find a seller in time... who pays the mortgage? Either of you get hit by a bus... who completes the sale/rehab?
When doing deals like this, you need to do a "Risk vs Reward Analysis". I don't see anyone risking so much liability for an extra $5k. Now think from a seller's point of view. I can sell my property to anyone. Would I sell to someone that will bu it as-is free and clear, or will I sell it to someone that wants a bunch of stipulations in the contract, bring a rehab crew into my house, under my homeowners insurance... in hopes that they can rehab my entire property and find a seller in the time it takes for his loan to close, which is never 100%? I think I'll go with the first scenario.
lol tnx Jon I didn't mean to give you a headache but I thank you so very much for the information. Never even consider what you mention so again I thank you very much, looks like I got lots to learn.
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