Chicago Title Company That Performs Double Closings?
I've called a lot of title companies and they don't seem to do simultaneous or double closings. Anyone know of any in the Chicagoland area they could help me with?
I've come across a lot of sellers I meet with that would make a good wholesale flip for me. Unfortunately the best I've been able to do is send the leads out to a few other investors. These investors aren't serious players and I end up losing these deals to other competition.
I'd rather now be able to go in with a contract and sign them up right there, knowing I could do a double close with a rehabber. The meetings usually go well, and I know I could sign them up. However I don't want to do this if I can't come through on a double close. I don't have the funds or credit to do the rehab myself. So instead, while I send out these leads the owner works out something with competiton =(
Any help would be appreciated.
All the Chicagoland title companies will do this but they call it a back-to-back closing.
I thought simultaneous and double closings were a bit different from each other. How do I explain the difference if they're both just called back to back?
I'm thinking of the 2 situations like this:
1. Your contract has and/or assigns that you sign with the seller. Then you sign another assignment of contract document with the rehabber. On closing day you close with both of them, though they are separate.
2. Double closing does not allow for an assignment. So you have a buy contract with the seller...and a sell contract with the rehabber. You have to pay closing costs on both ends.
I'm a little confused about the 1. situation however either way. With the buy contract with the seller...and the assignment of contract doc with the rehabber...is there no sell contract with the rehabber? Does the assignment of contract cover everything necessary? What does the assignment show? Does it name the final price the rehabber buys at...or does it simply reflect your fee?
cn:
I'm no expert in this, but depending on how much money you're looking for, here's how I understand an assignment to work:
1. You find a property and seller willing to sell. You establish the sale price with him and sign a purchase & sale agreement (which has the "and/or assigns" after your name). Your asking price includes your assignment fee.
2. You find a rehabber who is looking for a property. You assign the contract to him (using an Assignment of Contract form). You agree on an amount rehabber will pay you for the assignment.
3. Rehabber takes over the deal from there: you should introduce your seller to your new buyer and follow up to make sure everything's going well--you don't want your seller to give you a bad rap because of a lazy rehabber.
4. At closing, rehabber buys property from seller. Part of the proceeds will include your agreed on assignment fee and the title co. will cut you a check.
Obviously, the secret here is for you to do several things:
1. Find investor/rehabbers you can work with in advance; ask them what kind of deals they want: how much margin, how much rehabbing they want to do, what price range, what area, etc.
2. Work out in advance what kind of assignment fees they would be willing to pay ($1K - $10K, etc.). The rehabbers' margin of profit comes into play here: if they want at least 15% (for example) on a deal, you have to negotiate that into your deal with the seller. In other words, you have to purchase enough below market value to cover the rehabber's margin plus your fee, or no rehabber will take it.
Andy