Double Closing Question
I have found someone who just foreclosed on a vacant peice of land through means of a tax deed sale. He got the propery for about $2000 and is willing to sell to me for that amount. I have talked with potential buyers in the neighborhood who would pay me up to 5000 for it. I dont have much cash at all and dont want to bring a money partner in on it. I live in Orlando and am wondering what steps I could take to do a double closing here. Thanks in advance.
Travis,
I do not think it would be in your best interest to do a double closing because you would have to pay double closing costs. You should consider doing an assignment of contract. Since I live in Orlando, then here are a few pointers. Make sure the buyers have cash to buy the land or a pre-approval letter. It is very hard locating a land loan, so make sure they can close. How big is the land? If it's big enough, then why not divide up the land and sell it for more money? Just a thought. Also, make sure the contract you use doesn't have a "non-assignability" clause.
Here is the basics of an assignment of contract:
1. Get the land under contract at $2000
2. Set closing for 30 days, which is written on the contract.
3. Take the "Assignment of Agreement" contract found under the "Freebies" link and modify it to the way you want it. The original form is setup so that you get paid prior to assigning the contract over to the buyer. You can modify it so that you get paid at closing if you choose.
4. Have the buyers sign the assignment of contract form, in which they are taking your place at closing and you are not held liable for anything.
I hope this helps. You will also need a title company/closing agent who can do this transaction for you. All they really need to do is put an "assignment fee" into the settlement statement. The settlement statement is used to outline all the expenses of the closing. Good luck.
Tanya
Thanks for the advice Tanya. Exactly the response I was hoping for.
One more quick question, since you do live in Orlando, could you suggest a Title Company or Closing Agent for this type of transaction?
Travis,
I haven't done an assignment myself, but my mortgage broker does a few assignments a year. I'll PM you a good real estate attorney, they can also act as closing agents.
Tanya
Thanks again.