All Forum Posts by: Chris G.

As Scott says, it is a smart thing to do.

If you don't let you seller know up front, as soon as you assign the contract to your end buyer, you call your seller up and explain to them that after further analysis that their property doesn't work well with your investment portfolio, but that you have already arranged for one of your trusted partners to complete the deal. Explain that you are still available to answer any questions. Then just collect your money after closing.

Your buyers will also know that you are flipping either a contract or property due to the nature of the transactions.

You are just going to sell your LLC to your end buyer for the the amount of your choosing. $53K - $31K - Closing and carrying cost = the amount you sell your LLC to this investor guy for.

I don't know fine details of the how to do this, but that is a round about answer.

Sounds to me like you really need to look closely at the contract and see whether it truly not assignable. If it is not assignable, you need to see if there is a minimum amount of time you the city housing is saying you need to hold onto the property until you can re-sell it.

Unless the contract specifically states that it is NOT assignable, you will be able to assign it.

If you need to double close to get the deal done, so be it. You may even be able to find a title company that will do a wet closing (using your buyer's cash to fund your end of the deal). Title agents willing to do this are a rarity as of lately, but not impossible to find, especially if your buyer is using cash.

Good luck on the deal. Please report back let us know how it turns out.

edit: I just re-read through the posts... looks like you're already going to closing on your end... sucks to use hard money rather than just some transactional funding just to do a double closing, but if the numbers work for you and you make the amount of money out of the deal you're looking for, I say go for it.

Otherwise do the rehab like you wanted to do in the first place.

Awesome... now rinse and repeat!

To answer your question, yes they absolutely work.

There are lots of things you are not telling us.

How did you narrow down your criteria within the list you obtained? What did your postcard say? How many times did you mail?

With postcards, your response rate will generally be low on the first couple of mailings and will increase around the 5th-8th mailings. You can't just mail to a group once and expect great results.

You should filter your criteria within the list to owners that have owned at a minimum of 5 years. If you're able to calculate equity, then the more equity within the list the better.

Then a couple more things that don't really effect the motivation of the caller, but will make for a stronger deal for you, is to mail to houses that are at least 10 years old, have min of 2 baths, min of 3 bedrooms, and are between 1200 sq/ft - 2500 sq/ft... These last couple of figures will change depending on the area you live in... You just need to figure out what the other investors in your area are buying and go after those types of properties.

I could keep going... but I gotta get back to work...

pass

hahhaa... I like that. :mrgreen:

Make sure you call him in a month (or even 2-3 weeks from now). I'm sure he'll be even more motivated than he is now. Good luck!

Bill,

What happened with this deal?

Don't spend time and money on a website right now. It is just something that will distract you from doing what you really need to be doing. I know from experience.

I personally do have a website, but only because I know how to build one pretty quickly. I don't spend time driving internet traffic to my site. The only traffic that gets driven there are people directly typing in the link from my postcards and craigslist ads.