after i get a contract signed, do i need to immediately run title or is that something that the end buyer will do?
Will a title company be involved? If yes, the T.C. will run a title search.
Are you a buyer or seller?
The contract will state the rights and obligations of both buyer and seller, so read and understand your contract so you aren't placed in a position to inadvertently default.
@Michael Westberry Feel free to PM through out the process for any questions you come up. Don't mind walking you through your first deal.
I am assuming from your other posts that you are going to wholesale this home correct? End buyer: Is your contract with him signed or just you and the seller?
Will you be assigning the contract or doing a double close? (Generally depends on the $ amount you will be making.)
Do you have an investor friendly title company that will allow you to assign or double close?
Will they let you double close without transactional funding?
When do you simply assign the contract versus double close?
Great question. I would assign if your profit is a smaller number 9k or less. We double close whenever the profit is over 10k. Keep in mind you will be paying closing costs when you double close which normally eat up about 1k worth of profit (or a bit more). The benefit with double closing is neither property knows about the other (or the money you made). People can get weird viewing it as they could have got the property for X instead of Y.
I have never done an assignment and probably will not. (regardless of profit. I am just personally more comfortable with it.)
Thanks for the quick response, makes sense now. I understand that some people might get weird over the deal because they see how much lower they could have gotten it. But it shouldn't really matter because they should be getting the property for a great deal.
I'm in the process of closing my first assignment. I'll post the story up on the forums once the deal closes in a week.
Congrats man that is great!!! What an awesome feeling. You are absolutely right it should not matter. But wouldn't it stink to lose a buyer who wanted the home once they find out your take home? I have not had it happen and haven't made that much on a wholesale. I do know people though who have wholesaled homes and made more money then the guy who flipped it. You could see jealousy becoming an issue there.
Yeah man it's a crazy good feeling. After all these years reading and learning, I decided to finally take action and it's paying off! It's amazing how much you learn while you are doing your first deal or any deal really. I thought I knew what I was doing, but geez have I learned a ton in the past couple weeks on my first deal.
Definitely! It was great putting that check in my account.
@Justin Howe congrats on your first assignment. Please keep me posted on the progress!
@Ryan Dossey Thanks so much! You have been so kind to answer many of my questions. I will PM you
@Michael Westberry That's what I am here for man.
@Michael Westberry Thanks man! I'll post more details on the deal once it's completed in a week!
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing