Posted by Mark-NC on October 24, 2000 at 11:20:51:
John,
Assigning contracts basicly means that you are selling or assigning your Purchase contract with the seller to a third party for an assignment fee.
A double closing means exactly that. There are 2 closings and 2 purchase contracts.
Good luck!
Mark
assigning and double contract closing - Posted by john shine
Posted by john shine on October 24, 2000 at 08:16:57:
hi all,
i have been getting conflicting info about assigning contracts(flip) and double closing contracts.can someone please explain the differences.i am new to flipping contracts.i am currently compiling a list of wholesale investors to flip properties to.please advise.thanks to all who reply.john
Re: assigning and double contract closing - Posted by Bill Scott
Posted by Bill Scott on October 25, 2000 at 06:47:33:
Mark did a good job of explaining the differences. I wanted to add a reason why you might choose one over the other.
In an assignment, the contract is turned over to the new buyer, usually you keep a copy. The problem with this is that the new buyer then gets to see what you are paying for the property and thus what your profit is. For some reason, there are a few investors out there that think you shouldn’t be making more than one or two thousand on a flip—and if you’re making more, they might walk away from the deal.
With a double closing, there are two purchase contracts and the new purchaser never sees the contract you signed with the original seller. If you don’t know your investor, this is probably the safer of the two and the cost for a second closing is only another $100 or so. It beats a blown deal!