Best Ways to Flip Properties in NYS

[Shane Ronay]

Hi There,

As a newbie having listened to many national REI podcasts touting the ease of either a double-close or an assignment with title companies and later discovering that NYS is attorney-centric on these matters, I'd love to hear how veteran wholesalers in NY are best handling this. I'm getting my fist deal under contract now, and as an added incentive had agreed to pay for the seller's attorney. I let him have mine, assuming that my attorney would still be able to prepare my assignment agreement to my buyer, and not realizing that (according to him) it's now a conflict of interest, necessitating the need for my own attorney. Ok, live and learn. I understand the need for A to B and B to C purchase contracts regardless of how to close, but just assumed that doing an assignment would somehow have less moving parts and expense.

I'd appreciate hearing from how other wholesalers and other investors in NY are handling this, as well as if there are specific attorney recommendations you can make. This would not only be invaluable to myself, but obviously others down the line in the same boat finding this post. I'm personally in Rockland County, so an attorney within an hour drive would be great (ideally less).

Other specific questions I haveregarding the process I have are below, and would certainly appreciate hearing your responses:

• Is it fine to use one LLC to purchase and assign properties through?
• Do you always use the 16 page NYS residential contract (with strikeouts for cash deals)? Is there a shorter boiler-plated contract that you have on-hand to have the seller sign to lock them up prior to the attorney's version days later?
• Are condition and lead paint disclosures an issue when flipping an older home?
• What size of down payment do you generally put down?
• If I don't anticipate any issues, do I need to attend the closing? 
• What mistakes have you made along the way regarding these matters that have not be brought up but that you can think of would be helpful?

Thanks in advance very much for your thoughtful reccomendations. 

[Tzvi Balsam]

@Shane Ronay

I will make this simple if it a small deal under a million dollars (non commercial less then 4 Units)

then the buyer will just give you the fee in cash ....... the market is that hot and everything is bought in cash anyway.

If it is a large deal NYC style then they will just do a reassignment. 

I have a great NYC attorney if you need that is really reasonably priced and is amazing.