Re: Flipping properties,“The dealer” - Posted by jeff
Posted by jeff on April 21, 2002 at 12:48:26:
if you assign your contract to another investor, get the seller to sign a release. you want to make sure that if somethign goes wrong in the deal, that you have been totally released from it.
make a database of other investors before you get any deals going. you dont wanna be pressed for time with a contract running down while your looking for other people to flip it to.
yuor investor will be bound by your contract to the seller at that point and will carry out any further negotations with the seller. although if the contracts have been signed, there probably wont be much negotiations to be done. this is why you get the best deal you can before you get it tied up in contract. if you tie it up at full price and assume the flipper will brnig it down when he deals with the seller, then yuor gonna be buynig that property on your own. the cnotract is set up before it is flipped, and if it isnt a good contract, you wont be flipping it.
theres more money to be made at double closings than your gonna get for asignment fees. close on the first part of the deal with the seler in escrow then resell it to your flipper a few hours later. that way yuor price is shielded from the flipper so he cant argue about the money you make on the deal. if he fails to purchase it from you later, then the first deal, being closed in escrow, is DEAD. yuoll have to keep marketing the house and try to get it flipped again before the purchase contract actually runs up or your stuck with it. this is a great example of why yuo get a list of investors before you get properties to flip. if one falls through and yuo have to get it gone fast, start calling names on your list, and hope one of them can take it off your hands quick. youll have to drop the price a little to get this done probably, but if you bought it right, you can still get a nice profit from it. at that point i recommend just assigning your contract since your not really gonna be making a killing on the property. it isnt worth your time doing all the closings. take the quick assignment fee, get release forms signed by everyone, and walk away with your profit.