Sweetheart deal but no money for closing?
Have been reading, studying, etc on the topic and am ready to start. Found what appears to be a real sweetheart deal, with a profit potential in excess of $65k after flipping. The only problem, as ludicrous as this sounds, is that I believe I'll need $3-4k for closing costs (even with a double closing, I think) in order to make the deal go, and despite the profit, I don't have $3-4K in my pocket (or available to me elsewhere) to do this.
I have to believe that others have encountered this same thing. Any ideas, creative suggestions, etc? Thx.
you could always birddog it for no $$$ out of pocket or you cold set up a simultaneous closing with an investor or retail buyer(only if your confident of finding one)...in the simultaneous closing the closing costs would come out of your pocket so insead of getting 64k you'd get 60k or the 64k less whatever the closing costs are.......don't get too greedy, if your new, i would birddog it, there's always others, always
That's the approach I was thinking of, but at closing, even a double/simultaneous closing, don't I need to have a certified check for the closing costs? Or can it all be done on paper?
If your numbers are correct, I suggest finding a investor and PARTNER with him!!
Don't just give it to him for $500 dollars. With good profit, a wise investor will be more than willing to work with you.
If you have done the research, set the deal up, and ready to go, that is what I would do.
Good Luck,
Bginvestor
P.S. Just start calling investors in the classified....
I would have to agree with bginvestor, you should get a partner to pay the upfront costs for either a return on his/her money or a split of the profits. I alos have to agree with way_motivated, don't get greedy. Some money is better than no money!
So even if you have to split your profits, you're still making over $30K...is it better than ZERO???
Tanya
Quote:
On 2003-03-24 16:59, re_jon wrote:
That's the approach I was thinking of, but at closing, even a double/simultaneous closing, don't I need to have a certified check for the closing costs? Or can it all be done on paper?
Usually you don't need to come out of pocket for the closing costs if you use the same escrow or title company for the closing. The closing agent/escrow agent will just credit you amount from the second closing in the first closing. That is my experience.
However, check this out with your title company and closing agent. If they say you still need to come in with money, then see if you can cash advance on a credit card. If you can't do that, find an investor or send me a private email on the deal (and the state you are located in), if the deal and risk is right, I have no problem wiring the money to the title company for a equitable share of the profits which would be fair for you and me. Then you would have the cash from the proceeds on the double closing to do many of your own deals.
Taxjunkie [ Edited by taxjunkie on Date 03/24/2003 ]