Is Simultaneous Close Illegal And Risky???
I know this is going to sound silly, but my mother in law is a realtor in So. Cal, and I thought I would run this kind of transaction by her, since I will be marketing to these professionals in my area. I wanted to see if she had heard of it, what she knew, and perhaps I could network with her agent friends.
Here is what she replied to me with...
> Dave,
> I believe any licensed Reator could loose their license over this type of
> transaction. It also sounds extremely risky for you no matter what others
> say. My advice is to stick to legit transactions rather then risk enormous
> debt and law suits.
Is this woman confused or afraid, or is there some deep, dark secret in the note buying industry that is not being disclosed?
I thought this would be a great way to market for the "short" money while I am building up longer term money through flips and rentals as an REI.
Anyone with any EXPERIENCED ADVICE would be so helpful to me. I hope someone reads this that actually does these deals on a regular basis, and can let me know if they run into any weirdness or legal stuff.
You can private message me if you want, or respond to this post.
Thanks so much!!!!! - Dave
I only have one thing to say
'There are people have let it happen, people who watch it happen, and PEOPLE WHO MAKE IT HAPPEN" Which one are you?
Real Estate Investing isn't for everyone. You could talk to 50 people and get 50 different answers
Good Luck in whatever you decide
LORI
[addsig]
Lori,
This kind of answer just is not helpful at all. I don't need a pep talk. I am making it happen, I am just doing further due diligence.
If you have done simultaneous closing deals, I would love to hear about your experience.
Other than that, with respect, I do not need a general statement that has nothing to do with the question I asked.
Best, Dave
DAVE,
Real estate agents like everything to be cut and try. Banks like everything cut and dry.
Then pops in the Broker, now everyone's picture is upset, because someone else is going to get money.
Yes, I have done alot and make a lot of money from this. Okay, is it risky, only if the bank doesn't like how it is set up. Is it illegal, I don't know. Usaually the attorney gives me the paper work tells me what the transaction is all about. Then I go to work to make it happen.
Lori.
[addsig]
Dave,You may need to consult with a RE Attorney in Ma.,each state has different laws! Just .02 If both parties are aware that you will make a profit by bringing a buyer and seller togeather then there should not be a www.problem.The problem is most states have laws which state that only RE brokers can sell RE which they have no ownership interest in.
You didn't really put enough detail online to tell us exactly what you're wanting to do.
Per se, simo deals & closes are certainly not illegal, so long as the doer amply and legally covers his rear with disclosures, disclaimers, waivers, etc. so there's no fraud or false info being signed.
I've sure bought & sold enough RE & notes with simo closings, to know, and never had a kick or squak.
Like you're suspecting, most RE agents are leary of anything unconventional or different, and their brokers are generally equally wary, because of all the potential liability that might hit the broker...so the brokers try to keep their agents' focus on simple listings and cash sales for brokers' own profit picture.
If you are selling notes, give me a call or PM me and I should be able to beat what you are getting at close. I usally pay 90% of note value.
Tim
STS
I do double cloings often. They are not illegal. Do a search and you will see many posts regarding double closings. Also articles.
Make sure all the facts are out in open BEFORE the closing. This means the title company, the bank, the buyers and the sellers know what is going on. Then no probelms.
Gregg
[addsig]