Can I wholesale this deal ?

Question

So recently I got a home under contract through auction.com.  I really did not think they were going to accept my offer.

I have ZERO experience wholesaling. Is this a contract that I am able to wholesale ?  Does anyone have any experience doing this ?  Particularly with auction.com ? I have already sent in my EMD.  Suppose to close in 3 weeks. It is a heck of deal.  I was going to rehab, but have so much other stuff in the works.   Thoughts ?

Tim G. · Answer

I guess my understanding is wrong then. Sorry

Brit Foshee · Answer

@Justin Stamper   As it sits about $85,000.  ARV about $125-130,000.

Justin Stamper · Answer

What do you think its worth? I have a friend who might be able to unload it for you if you send me the details.

Brit Foshee · Answer

Tim Gordon

"The double close is basically to prevent the buyer from seeing what you paid for it. Until it closes."

That is not my understanding of a double close at all.  I purchase the property, and then sell with my own contact to new buyer.  It has nothing to do with hiding the purchase price.

I am certain I can find a buyer.  I just don't want to be wasting people's time if it isn't possible.

Brit Foshee · Answer

Tim Gordon

I'm not an expert, but I think the reason for a double close is to bypass the contractual language that prohibits assignments.

Shaun Reilly · Answer

If there isn't anything about a deed restriction, like not being able to resell for 30, 60, or 90 (or sometimes more) days then you can probably double close without any issues.

If there is a restriction then you can still usually sell it just for some capped amount (I think usually 20%) more than you paid.

If you can carry it then you can also wait out the restriction as well.

This should be fairly explicit in the documents and if not then there shouldn't be any issues double closing.

Tim G. · Answer

Sort of.

But.. if the contract prevents it there really is no way around it. You still need to be able to assign the contract to the new buyer so they can close in their name.

The double close is basically to prevent the buyer from seeing what you paid for it. Until it closes.

This deal can totally be done, but it would probably take a third party escrow to handle the assignment fee and you would either change vesting to their name etc... I really don't know again, without review of the contract I cannot say.

Find a buyer, then worry about the details is my personal opinion because its a moot point if you cannot move the deal.

Tim G. · Answer

Without reviewing the contract who knows?

Brit Foshee · Answer

@Joe Gore I am in a position to close on it myself, I would just prefer to wholesale it.  Am I able to do a double closing in this case ?

Account Closed · Answer

If you don't close there is a big chance you will lose your EM.

Joe Gore

Can I wholesale this deal ?

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