Buying On A Option
hello,
i am about to place a property under contract with a option to buy. i plan to do a retail flip. from you pro's experience what is the best way to get this done?
i know i can do a double closing but that is not really popular in my area.
i know i can assign my contract to the buyer, but i was wondering if my buyer may have trouble then getting a mortgage since I am not on the deed? any ideas on how to skin this proverbial cat?
double closing
Every challenge presents an opportunity. I'd say here's your opportunity to network with a mortgage broker. Explain to them what your doing and ask the mortgage broker "if I brought you a buyer could you get them qualified?" Some may say no, some may say yes. They'd have more incentive to say yes because they get paid if they bring in the loan. Now you've got a mortgage broker in your network of people. I'm sure you could think of something that the mortgage broker would be able to help you with now that you've brought him/her a loan. It's a win/win situation.
Ryan J. Schnabel
If you are acquiring an option to purchase a property, the option can be assigned and the assignee would then complete the purchase. No double closing would be required. You might want to qualify the buyer on your own, but under the terms of most options, this would not be required. Also, you would retain any assignment fee even if the purchase was not completed by the assignee. Be sure to include language in the assignment document to the effect that the assignment fee is not refundable under any circumstance.
i appreciate the responses i have recievecd. i am aware i could asign my interest however, if the buyer is getting a mortgage on the property this may be a issue?