Double Close Or Assign??
I am very new to all this and I just wanted to clear a couple things up. I have searched the forum and just wanted to clarify a question or two.
Lets say hypothetically I have a motivated seller in pre-foreclosure who only owes 25k on his house and wants his problems to just disappear for what he owes on the house. The house is worth approx. 130k. Now I know that I could sell this house for 100k and walk away with 75k leaving 30k in the house for the buyer.
Is it better to try and assign my contract for a 75k fee or just sell the house for 100k and do a double closing?
Please remember that I am new and this is hypothetical so the numbers may not be to par, especially for a rehab which then I would imagine I would need to sell out at around 91k. Ultimately I guess I need to know is it better to assign for a high fee knowing the buyer will know you made way more then he will or to have a double closing so they really don't know what I got the house for?
For large amounts like that you're going to need to double close. I believe for anything over 5k in profit you're better off double closing.
Also, I don't think anyone would pay that kind of assignment fee, especially if you're flipping out to a rehabber. I know logically they shouldn't care how much you're making, but this is the real world.
I never do double closings, for example my last flip. I found a house for 160k, arv on the house was close to 400k, needed about 80k in work, I assigned my contract to somebody for 55k, my buyer went to closing two weeks ago and the title company wired me 55k. I didn't have to spend a dime on the deal. If you have a deal you will be able to sell it with out ever taking title of it and paying double taxes on the resale.
Man, how did you find such a great deal keoki? I rue the day I find such a deal.
Thanks a lot,
James