I Don't Want The Buyer To Know My Real Fee Until Closing.....Put Your Thinking Caps On
For example: I located a house owned by the bank listed at 93,000. Comps in the area run about 140,000. (FMV * 70% - repairs) no repairs needed. 93K , yep that's about right. I've negotiated with the bank and they are willing to sell for 63,000. I have a buyer that wants to pay 93K cash. If I tell him that the house is really 63K and my fee is 30,000 they will probably decline. How can I structure the deal where the buyer does not know my fee until he closes on the house without doing a short sale or wholesale deal? 1. Have him pay the bank 93K and then the bank will keep the 63K and give me the 30K? Will a bank be willing to do that??? 2. What if he uses financing. Could he include the 30K fee into the loan and I get a check at closing? (without doing a short sale) If my fee was only $5,000 I would have no problem asking for that. I just think that a buyer will shy away from a high finder's fee. Good news is that he will get a great deal on a house. Put your thinking caps on a be creative. I'm sure others will benefit from your responses as well. Thanks :-S
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If you have that much in a flip you should definately do a double closing. To me it would be worth 1 set of closing fees to have everyone happy and walk away with a check over $25,000. But if that's not for you, just tell the buyer the price is what it is. They are getting a wonderful deal and everything else should, and probably will, be irrelevant.
hope this helps,
clear2close
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I concur...double closing is it. Use hard money for a day if you need to.
Even with a good deal I would have trouble with your fee. ( Just being honest and human). Don't let them find out and refuse to close - because if you can't...they can approach the bank a day later and put it under contract while you are in breach.
"Buy" the property for 63 from the bank, then assign your P&S contract to the buyer for the price you want. Close the two on the same day, You write a check to the bank for 63, and the new buyer writes you a check for 93. Thank you and have a good day.
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if fmv is in the 140's and the buyer has a problem w you making 30k, tell him to go find another deal that will give him 50k equity...heck send me a private message w the details and i'll buy it from you...
Birddog1,
"buy" the house using lenders cash right?
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