Investor · Ashburn, VA · Member since 2019 · 11 posts · 2 votes
If BoB Noob (fictional person) has a signed Purchase and Sales Contract for property X with Dwayne, can BoB enter a 2nd Purchase and Sales Contract on that same property X with Larry. The 2nd contract would include a clause stating that Bob's sale to Larry is pending BoB's purchase of property X from Dwayne? One more detail...Bob has deposited 25k earnest money with Dwayne's title company. The property cost 100k.
Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
5y
@David Morrow - Isn't this the same tactics wholesalers use. Wouldn't you just do a purchase and sale with an "assign to" clause. I would recommend googling "assign to" wholesaling, which seems like the most straight forward approach to your question.
Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
5y
@David Morrow - Isn't this the same tactics wholesalers use. Wouldn't you just do a purchase and sale with an "assign to" clause. I would recommend googling "assign to" wholesaling, which seems like the most straight forward approach to your question.
Investor · Ashburn, VA · Member since 2019 · 11 posts · 2 votes
5y
@Andrew Freed Thank you for the response. I totally agree assigning is a great and the go to option. I should have included that my questions scope is in terms of a double or simultaneous close. The title company attorney I was interviewing on double close mentioned if the original seller does not perform (sell) it would create an uncomfortable ripple effect in the deal chain and recommended adding a clause to my contracts that the BC sale (2nd contract) was was dependent on the AB sale closing first. Hope this helps give a little more context.
Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes
5y
@David Morrow you know exactly what to do here, but your closing company doesn't. You should immediately find another closing company based on their response here. Otherwise you'll end up taking way more time trying to teach the closing company what to do.
Know your buyer and what they'll pay, THEN get the AB signed with your seller at a price below what your buyer stated they'd buy it at. Now get your buyer to sign your assignment contract and share with them your original AB contract. Send everything to closing company and collect your check.
2nd option, know what your buyer will pay, get AB signed lower, then go to buyer and sign another contract with you as seller and them as buyer (BC side) and DOUBLE CLOSE same day as long as your closing company will allow pass through funding using your end buyers funds to pay for your AB side (Investor Friendly Closing Company will know all this). If the end buyer has a lender that won't approve it, they may not approve the assignment at which time you'd either have to be a line item on the AB side to collect your fee and let your seller and your buyer be direct OR you can use Transactional Funding and double close.
Investor · Ashburn, VA · Member since 2019 · 11 posts · 2 votes
5y
@Jesse LeBlanc
Thank you for the response Jesse. I did move on to another title company that was recommend to me =) Say the seller changes their mind and refuses to sell and I was set to double close with transactional funding...what are some possible solutions to that challenge?
Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes
5y
@David Morrow i figured you’d need to see another closing company. 🤘🏼
I’d do my best to continue making sure I solved the sellers problem hopefully by still closing. I never force a seller by memorandum of contract like some.
sure, I’d be upset but it’s generally not worth legal council and going to court over. So your best option is to still keep following up and attempt to help the seller.