Posted by Redline on May 28, 1999 at 14:54:09:
The second part of your question is true - technically all you’ll be doing is tying the property up with a contract. You’ll then find another investor to buy the property from you - and you keep the difference. He’ll be doing to paying for the property and the fixup - you’re in essence just getting a finders fee.
Now, there are issues - like you should be sure the person you’ll be flipping to can/will close the deal (because you’re on the hook from the original contract and so you’re responsible.) For the same reason, once you’ve assigned the deal (using an assignment doc) make sure and have the sellers sign a separate document stating that they accept the new buyer and hold you harmless.
Also, you may have to do a “simulataneous close” instead of an assign because the person you’re flipping to doesn’t know you and won’t want to pay you UNTIL he closes on the property. A little more involved and it costs a little more but can certainly still be worth it.
Good luck,
RL