All Forum Posts by: Drew Dickinson

Still looking for advice; I'm getting the feeling that is a mess.
We (my wife) got a HUD deal under contract that we were gonna flip ourselves; we got it OUTSIDE of the exclusive owner occ period. We decided to buy something else to live in and wanted to flip this to someone for some money. I don't have the cash to close and no transactional funding.

So we found a guy who really wants the place and we added him to the HUD contract (which was easy). Now he wants to make sure that there are no deed restrictions and also how the logistics of this work out. Any advice?

I know this could have been done better but this is my first wholesale and at this point I just really want to sell it to him and he really wants to buy it. We have to stay on the contract or else HUD just puts the place back on the market and we lose our deposit and extension money. At least that's what I've been told.

What is the best way to do this? I have heard from people here that there has to be two closings and two transfer taxes paid which is fine. This is supposed to close ASAP. Can't we just sign an agreement ahead of time stating that we will be removed from title in exchange for the fee that we have already agreed to? Any help would be great.

Here in my situation:
We (my wife) got a HUD deal under contract that we were gonna flip ourselves; we got it OUTSIDE of the exclusive owner occ period. We decided to buy something else to live in and wanted to flip this to someone for some money. I don't have the cash to close and no transactional funding.

So we found a guy who really wants the place and we added him to the HUD contract (which was easy). Now he wants to make sure that there are no deed restrictions and also how the logistics of this work out. Any advice?

I know this could have been done better but this is my first wholesale and at this point I just really want to sell it to him and he really wants to buy it. We have to stay on the contract or else HUD just puts the place back on the market and we lose our deposit and extension money.

What is the best way to do this? I have heard from people here that there has to be two closings and two transfer taxes paid which is fine. This is supposed to close like yesterday so any help would be awesome. Can't we just sign an agreement ahead of time stating that we will be removed from title in exchange for the fee that we have already agreed to?

Thanks guys,
A seperate closing if probably what we'll have to do. Steve, you don't happen to know what formula Bucks County, PA uses to calculate this do you? I also hear what Greg is saying. Does anyone have any kind of assignment contract for this situation? Ie: "me and the end buyer agree to have a second closing on the property immediately after the first close. End buyer agrees to pay X and I agree to be removed from title in exchange for that X." Any help would be greatly appreciated. Thanks.

Hey Greg,
When you say you are quitclaiming him the deed, how has that worked for you? I only ask because I'm set to close on one next week and we were planning on doing a separate close between the end buyer and myself, therefore having to pay additional transfer tax. Can you help me out?

In the HUD deals that I've done (only 3 or 4), they have never required me to use their title company. In fact in their AOS, it has a spot where you can choose between "HUD'S designated closing agent" or write your own in. Problem I see with the separate closes is the fact that someone is "buying" a place from you that you don't technically own yet. Your buyer better trust you. On a side note, I have a guy who I'm flipping a HUD deal to that has asked me to prove that HUD does not put deed restrictions on the property. Anyone have anything formal they can direct me to? I know that HUD doesn't (FNMA sometimes will), but I'm having a hard time finding anything that tells me so. Thanks.

Thanks guys,
I realize that the offer is made to the seller and they are the gatekeepers to the bank so to speak. But for arguments sake, let's say that the first offer that was submitted was for 400k (ours was at 602k). Yes, our offer came in after one had been signed and subbed to the bank. Is it theoretically (legally?) possible that the bank signs off on the 400k offer without ever being made aware of our much higher offer? I realize the bank can reject any short sale proposal that they want, but is there anything saying that they need to be made aware of ALL offers? Or does that have to be specifically requested as @JScott says? If that's the case, couldn't the seller simply refuse to sign any offer that wasn't from one of their friends for lower than market value price?

Hello All,
I'm trying to get some advice here. A client of mine recently put in an offer on a Bank of America property that was listed as "Active-with other contingency." Basically, in my area, that means it's a short sale where the seller has signed the agreement, but the bank has NOT yet signed. I know from speaking to the listing agent that our offer is higher than the one the seller signed. The listing agent told me that she passed our offer along to her sellers as well at the attorney her sellers hired prior to starting the short sale process. My questions:

- Does this agent legally have to present this offer to Bank of America even if her seller does not sign off on it?
- How can I do the best for my client (and myself) by making sure his offer gets seen.

We were thinking of trying to sub the offer directly to the bank, but in doing a little research, it seems pretty hard to get a direct contact in BofA's short sale office. I would think there would be some risk of fraud for the sellers and their agent if they are representing that the lower offer they subbed to the bank is the best one. This can't be too un-common an experience. I would greatly appreciate any imput you all could offer. Thanks.

Thanks for the response Jon. It is a financed deal. And I agree, it does sound large deposit to me - in my area, they are usually about 5%. And I told him the same thing about the seller - he shouldn't even be on the market yet. My bro is convinced someone else will agree to this seller's terms and get this house if he doesn't stay in the deal - the inventory is pretty low there and houses like this don't come up all that often.

Hi everyone,
I'm an agent in PA and have family member buying through another agent in NJ (I'm not licensed there). Couple of Q's for the forum but first a brief synopsis:

My bro-in law loves a house in a town where there is not much inventory. However, the owner is a control freak and has been very temperamental t/o this process. Asking price is 439k. My bro offered asking price and offer was verbally accepted but they are now working out some details. The owner won't close until Jan 31st 2013. 8 months away. At first it was supposed to be Oct 31st but now he pushed it back. He says he's either going to find a new house or build one. The earnest money my bro offered was instructed to give by his agent is 50k. My questions:

1) What do you think of the 50k earnest money (my bro's agent believes that this amount is what's keeping the owner in the deal) I think it's way too high regardless of the whims of this seller
2) How would you structure the contract to best protect the EMD?
3) What is my bro's recourse should the owner try to push back the date after the contract is executed.

Any other imput you can interject would be appreciated. Thanks. Drew

Monica,
Partnering with people in that context sounds like an awesome idea to me. I'm not judging anyone, but the thought of low-balling a new widow to make a few extra bucks sounds awful to me. Just curious how you protect your money (the $ you're using for rehab as well as your projected profit)? Thanks for the post.