My business partner and I are on the verge of getting our deal done. We have a buyer lined up and just need to get the contract signed before we start with the closing. We don't want to the seller to know how much was made off the deal but we know the buyer and don't mind them knowing.
I was wondering is a "Blind HUD" or "Seller Only HUD" a viable alternative to doing a double closing for shielding the amount made on the deal? From what I heard, they are usually done in commercial transactions but can be used in residential as well. If that option is a no go then could we have our buyer pay our assignment fee in a separate escrow to be executed upon completion of the closing so that it won't show up on the final settlement form?
Hey @Shaun Miles , welcome to BP!
I don't know that you have another option other than doing a double close. Even so, the seller could still make the effort to see what the deal was sold for.
If you do an assignment fee addendum, you are right in that the seller will see what your fee is. What is your concern here? Is the seller family and you want to avoid looking like a jerk? ;)
I ask, because there can be various reasons that you resell the property at a higher cost. JV, rehab loan, etc. You may just need to be creative if the seller starts jumping up and down.
Is there a reason you want to avoid the double close other that saving a few hundred dollars?
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