For instance, I had one deal that I flipped where I had agreed to pay all the closing costs. Come to think of it, I was getting the property for just closing costs. What happened in this instance was that the title company did what they call a “pass through”. I arranged with my buyer to close first and then I closed later that day with the seller using my buyer’s funds. Technically though, possession of the property did not transfer until I completed the transaction with my seller.
You don’t have to wait at all. You could do a “simultaneous close” wherein you buy the property from your seller and then turn right around and sell it to your buyer, at the same closing agent’s office, using the same people.
It’s a little like a relay race: someone passes the baton (property) to you and in a short while you pass the baton (property) to someone else.
In this type of situation what closing costs, etc. would you have? I mean you only had the property under a purchase contract and as soon as you got it to closing it was already re-sold. How does the title company or RE atty look at this as far as doc. stamps, transfer fees, and other legal mumbo jumbo?
Re: How long after signing Contract for Purchase do I have to wait to FLIP the property??? - Posted by Ray S(FL)
Posted by Ray S(FL) on December 24, 1999 at 14:17:46:
Loma,
It is still two seperate closings however they are completed at the same time. So, you would have two sets of closing costs. I usually negotiate my seller to pay all of the closing costs on my purchase and my buyer to pay all of the closing costs when I sell. That way whatever the difference in the two contracts happens to be is my MONEY.
Also, I have had some closing agents give my buyer and seller a break on some of the costs since they are getting paid twice for doing one title search. Things like recording the deed and doc stamps are set in stone by the state where you live.