Rental Property Investor · Miami, FL · Member since 2016 · 144 posts · 18 votes
Hey Guys, a buddy of mine has a contract that he wants to assign. He doesn't have a. Bigger pockets account, so I thought I should help him by creating this forum. He wants to avoid double closing, so he wanted to form an assignment deal just between him and the buyer.
His plan is before assigning the contract to the end buyer. The buyer has to deposit 20% non refundable fee into his account , then pay the remainder at closing.
What do you guys think? Can he burnt with this type of strategy?
Need more details regarding the timing of it all. However, to avoid the double settlement simply do the following: Have the Seller and your Assigning friend join on the deed to the end Buyer. This is assuming the Seller is not a Bank (they frown on anything but a clean settlement) and the end Buyer is paying cash. Also, just have the end buyer put the deposit into the Settlement Attorney's escrow account. What end Buyer is going to put money into an Assignor's account who he may not know? Just do it clean. What is your friend afraid of? Does he not have the funds to settle if his Buyer walks?