I've got 2 properties that I am scheduled to close on for 10k total next week. I've accepted an offer for 16k that is going to close on the properties immediately after I close. My attorneys fees are $500 for each property, so I will be coming out of pocket $1,000. The end buyer will also have to pay to close (only $500 total because of all the title work, etc will already be done.)
Is there a way to avoid a double closing? I foolishly did not write "and/or assigned" on the original contract from the seller, so I'm not sure what to do. Any suggestions would be appreciated. I've bought lots of rental property, but this is my first wholesale deal.
blind/split HUD 1 form?
Unless your contract forbids assignment, in most states you can still assign. Would your buyer being okay knowing your mark up?
@Wayne Brooks No I don't think she would care. I've never heard of assigning without the assignment clause. Have you ever tried this?
Yes, you can assign by adding an assignment clause to endorse the contract to another, if state law doesn't forbid it, so ask your attorney.......tell your attorney to assign your contract to the buyer. At this point, he may think of another way to get in your pocket as $500 is rather cheap in total, a $250 split?
Might have considered settlement costs prior to accepting the contract as you could have pushed more of the costs either direction so reduce you expenses, I know, hind sight.
Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com
Yes, in most states a contract is assignable as long the contract doesn't specifically say it's not assignable. You are still bound to the contract though if your assignee doesn't perform. You just need an assignment agreement executed between you and your buyer.
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