Hello Investors, I have always done double closings and mainly to keep my profit margins private from end seller (owner) and end buyer (investor).
So I was wondering if there is anyway to do an "assignment of contract" and still have the luxury to keep my profit margins private from end seller (owner) and end buyer (investor)?
If you assign your contract, your buyer steps into your shoes as the new buyer in the contract. How do you plan to sell/assign a contract without the buyer looking at it first? Who would do that?
What's the big deal? The seller has to perform per the contract. The buyer either wants it for the price you are offering or they don't.
Today I received a replacement patio umbrella cover I bought from a seller on ebay. I wanted a specific material and color and a new one from PB is $259. I bought one from a seller on ebay with good reviews who was selling one from PB that was "new, never been used". The pictures were good and the labels were still attached. I paid $100. It arrived in like new condition and was as advertised. The seller had left the price tag on. It appears she had bought it at an outlet store marked down to $29.99. She may have paid less as there are ebay sellers that buy returns and seconds in bulk lots from PB. So she paid $30. And I paid $100. In a previous lifetime I was a hotel/resort buyer. Believe you me, I know how to get a discount on consumer goods. Am I going to do whatever it is she does to get that umbrella cover for $30? Nope.
Is your buyer going to do what it takes to get your discount? Probably not. Is your seller going to risk being sued for specific performance if she doesn't sell at your contracted price. Probably not.
If your spread is really good, you should be closing on them before reselling anyway. Just saying.
Kristine Marie Poe thanks for the response....:) sounds like i will continue to double close.
Stephen, as someone who has been in your position I would say honesty is the best answer with your client if you plan to assign the contract to help them avoid double close fees. There is no way to get around it in Texas, I don't know if it is different in other states. @Stephen R.
Best of Luck!
@Paul James When I double close I always pay for the closing fee, so not an issue about honesty, its about privacy.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!