Posted by Fred on December 24, 2000 at 22:35:54:
I looked on the archives for your post, can’t locate it. Can you help?
Closing a Wholesale Deal - Posted by Kevin-Baltimore
Posted by Kevin-Baltimore on December 22, 2000 at 22:35:54:
I am interested in doing on Wholesale deals. I have been successful in doing only one so far. I made $5,000 on the deal. However, the tremendous tribulation involved in closing this deal was overwhelming. As a result, I haven’t wholesaled a property in nearly a year. However, I am now ready to get back to it.
According to Ron LeGrande, one should be able to close a deal in a matter of days and certainly no longer than two weeks. However, in Baltimore, Title work can take as long as 45 days. Is this unusual, and if so how do you handle it when dealing with institutional sellers?
Moreover, Ron LeGrande suggests doing simultaneous closings whenever possible. My title agent wanted to charge me for two separate closings; is that typical? This method would quickly eat away most of my profit. Is there a better way? I know about Assigning contracts, but is it true that HUD contracts are not assignable?
I would appreciate help with these issues. Thanks in advance…
Kevin-Baltimore
Re: Closing a Wholesale Deal - Posted by SCook85
Posted by SCook85 on December 23, 2000 at 08:53:53:
Kevin,
It’s good to see you back.
Ron Legrand is correct in stating that a wholesale deal can close in a matter of days, they can in Baltimore as well. The glitch in Baltimore City is that it takes a while to get a lien sheet from the city. They are improving, usually you can get one in less then 3 weeks.
It is possible to settle without a lien sheet however their are drawbacks. If your buyer is borrowing money, the lender will require a lien sheet because they want the deed to be recorded immediately. You can not record a deed without the lien sheet. If your buyer is actually paying cash then they can settle without a lien sheet and hold off on recording the deed until the lien sheet comes in. They in some cases will ask you to escrow some money ($2000-$5000 is typical) until the lien sheet comes in. They want this money escrowed to cover any unforseen expenses that are attached to the property.
As far as doing simultaneous closes, yes they can be done, however you do have to pay for both settlements. The costly part of paying for both settlements in MD are our transfer taxes. They are steep and can eat up thousands of dollars worth of profits. Most attorneys will work with you as far as their fees go when doing a simultaneous close, but some expenses are unavoidable.
It is true that HUD contracts are non-assignable, and their are no exceptions. I put a post out about how to get around the “non-assignability” clause. You should search the archives to find it. I went into detail of how I do it.
I hope this helps.
Have a very Merry Christmas!
Steve