The most important question is; does your buyer’s mortgage co. or lender know that they will be funding a “flip”? It does make a difference to most lenders. If they will not fund it, then you need to locate a lender that will, there are many out there. Hope this helps. By the way, if their lender will fund it, then yes, you will be getting a LARGE check!!
Ok long story short I have a contract on a house for 675k and a buyer for 750k! Now the house will appraise ok but the new buyer is going through a mortgage Co. to finance the deal will a bank\mortage Co. cut me a check that big?
You all are the real estate masters here and i have not done this often and certainly not involving so much money i’d realy be gratefull for your feedback. Thanks
Chances are the lender will not fund your portion of the deal. They will probably be happy to fund based off of the $675k contract but not the $750k contract. With a deal of this size I would imagine that your buyers are pretty well off. I would talk to them about having them cut you a check for $75k, and then just assign your contract to them and let them get a loan based off of the $675k contract.