All Forum Posts by: Anton Watt
Anton Watt has started 61 posts and replied 190 times.
Post: Why would an Attorney Refuse to Double Close???
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
That is exactly what I am doing today! I appreciate the advice!
Originally posted by @Michael Plante:
Originally posted by @Anton Watt:
Hello BP,
I am under contract to purchase a home from a wholesaler and we will be doing a double closing. The wholesaler will also be double closing with the original seller so this is technically a triple closing. I am using a new attorney on this deal because that is the original sellers preference and yesterday I received an email from the attorney saying they cannot double close this property. I have done this plenty of times with other attorneys and they love it because of the multiple fees they can charge on one closing. I haven't gotten a response from the attorney after I asked why they wouldn't do it. BP do you have any experience as to why an attorney would not do it?
Personally I wouldn’t worry about it and just use one of the other Attys that lived doing your other double closings
Post: Why would an Attorney Refuse to Double Close???
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
That is correct. Theres me, the wholesaler and the seller. I think I will present this option to them. We are planning on switching attorneys on Monday but the current attorney has lower fees so it will be great if we can keep the closing where it is now.
Thank you so much for the advise!
Originally posted by @Bill F.:
Originally posted by @Anton Watt:
I have never heard of the 100% LTV option. How does that work when he double closes and then I purchase from him?
Originally posted by @Bill F.:
@Anton Watt have never done a deal in GA, so I'm just guessing here. I'm also assuming that the wholesaler isn't bringing any cash to the table either.
This closing attorney could have a stricter view on double closings than the ones that you work with in the past and/or the title company they use won't allow it.
This attorney could take the view that since the wholesaler doesn't own the property, they can't release your escrow funds to transfer to the seller.
You could draw up a 100% LTV mortgage from the seller to the wholeseller to act as transnational funding or the wholeseller could get real transnational funding.
Who is the other person involved in this? You, the wholeseller, and seller are all I count?
Seller holds a note to the wholeseller at 100% LTV. Now the the Wholeseller owns the property and can sell it to you.
Or you could buy directly from the seller and have fund a fee transferred to the wholeseller at closing. That seems like the simplest option to me.
Post: Why would an Attorney Refuse to Double Close???
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
I have never heard of the 100% LTV option. How does that work when he double closes and then I purchase from him?
Originally posted by @Bill F.:
@Anton Watt have never done a deal in GA, so I'm just guessing here. I'm also assuming that the wholesaler isn't bringing any cash to the table either.
This closing attorney could have a stricter view on double closings than the ones that you work with in the past and/or the title company they use won't allow it.
This attorney could take the view that since the wholesaler doesn't own the property, they can't release your escrow funds to transfer to the seller.
You could draw up a 100% LTV mortgage from the seller to the wholeseller to act as transnational funding or the wholeseller could get real transnational funding.
Post: Why would an Attorney Refuse to Double Close???
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
That is a good point. I have to clarify with the wholesaler if he is dry funding because an assignment may solve all of our problems. Thank you so much
Originally posted by @Matthew Nicklin:
Short answer: Risk
Long answer: Your wholesaler is probably not bringing funds to the table which means they are going to be using your funds to allow the wholesaler to purchase the property from the original seller and then sell it to you. If the wholesaler was bringing funds this would not be an issue. Based on the way trust accounting is supposed to work you can not use someone elses funds to close a deal then use those same funds on another closing. Some attorneys will do it but others wont because it may effect their insurance or throw off their trust accounting.
You have 2 options.
1. See if the wholesaler has an attorney that is comfortable with this transaction.
2. See if the wholesaler is comfortable with using assignment as any attorney will be ok with assignment. The downside to using assignment is you as the final buyer will see how much the wholesaler is making so some wholesalers do not like that option.
Post: Why would an Attorney Refuse to Double Close???
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
Hello BP,
I am under contract to purchase a home from a wholesaler and we will be doing a double closing. The wholesaler will also be double closing with the original seller so this is technically a triple closing. I am using a new attorney on this deal because that is the original sellers preference and yesterday I received an email from the attorney saying they cannot double close this property. I have done this plenty of times with other attorneys and they love it because of the multiple fees they can charge on one closing. I haven't gotten a response from the attorney after I asked why they wouldn't do it. BP do you have any experience as to why an attorney would not do it?
Post: Sellers Do Not Want to Give Due Diligence. What Do I do?
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
That is fantastic!! Thank you so much for the advise. I really love BP!
Originally posted by @Michaela G.:
Originally posted by @Anton Watt:
I think I will do that on this next one. I am used to no DD so I am confident in closing. I am sure that with a high earnest like that the sellers would take my offer and even hope I don't close just so that they can add that 20K to their bottom line. Thank you. Are you offering 20K earnest for your prospective deals?
Originally posted by @Michaela G.:
Increase earnest money. If you show that you're serious and offer 20K earnest money, when other investors offer 1K - the seller will look at you differently.
I've bought all of my deals in the past few years for 10-15K and offered full purchase price as earnest money
Post: Sellers Do Not Want to Give Due Diligence. What Do I do?
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
I think I will do that on this next one. I am used to no DD so I am confident in closing. I am sure that with a high earnest like that the sellers would take my offer and even hope I don't close just so that they can add that 20K to their bottom line. Thank you. Are you offering 20K earnest for your prospective deals?
Originally posted by @Michaela G.:
Increase earnest money. If you show that you're serious and offer 20K earnest money, when other investors offer 1K - the seller will look at you differently.
Post: Sellers Do Not Want to Give Due Diligence. What Do I do?
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
It really is. Prices are continually rising just about everywhere. I offered higher earnest on some but I was just advised to offer very high earnest such as 10K-20K. I am sure that would be attractive to sellers even making them hope I don't close in the end but If I get all my DD done with the lender I will definitely close. I am used to no DD so I will definitely close. I just need a way to convince sellers to work with me.
Originally posted by @Randy Lee:
The market is so hot in Atlanta, it is difficult to get away with asking for DD, especially for good deals. I am wholesaling 1 property in Pittsburgh and have more than 10 offers (many with no DD). If your offer price is much higher than the others, maybe you can get away with asking for just a few days. Even when you offer more earnest money and less days for closing, if the deal is good and there are multiple cash offers the seller will likely take the other offers more serious. If there is a good offer with no DD but less earnest money, the seller will likely prefer to counter that offer for more earnest money. It's best for the seller and provides them more security. With history and experience under your belt, you should have no problems finding a lender who will allow a contract with no DD.
Post: Sellers Do Not Want to Give Due Diligence. What Do I do?
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
Yes so they are telling me at least 5 days which in real estate can feel like a month haha.
Define your "due diligence" period that sellers don't want to give.....3 days, 14 days, 30 days, appraisal requirements, ...?
Post: Sellers Do Not Want to Give Due Diligence. What Do I do?
- Realtor
- Florida / Atlanta
- Posts 210
- Votes 53
Ok I will PM you now