Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
We have a property under contract and we are marketing it to buyers. We have a interested buyer who plans to live in the house and get a conventional mortgage from a bank. As a wholesale deal for us, is it possible to do a double close with the end buyer having leverage instead of being a cash buyer? All our wholesale deals have consisted of cash buyers so this would be the first time for us. I am curious if anyone has been in this situation before.
I'll bite @Ryan Billingsley but my opinion is probably worth what you paid for it! I'm not a professional wholesaler, nor do I play one on TV:)
My experience with lenders and assignments is that they hate it. They do not like seeing folks 'inflating' purchase prices just before close. I know you are providing a valuable service, but they don't see it that way. A double close would be necessary, but that may not work either. They will wonder why the property is not being sold by the owner of record.
Once I did something like this and had the seller give the title co a letter of how to distribute their proceeds from the sale. I wasn't anywhere in the purchase and sale docs, just on the distribution of proceeds letter. The letter couldn't be amended without both her and I's written consent. On the letter, following my generic company name as payable to, I added 'trustee'. It worked out fine. Good luck!