Posted by Mike Daly (GA) on March 23, 2002 at 07:26:57:
The only way you can sell to your buyer without him knowing your profit is to do a simultaneous closing. Search the archives for more info on this. Basically, you’ll need a contract between you and the seller, another contract between you and your buyer, and a title company that will do a simulataneous closing (you’ll probably need to call several to find one, but they are out there.)
Option / Found a Buyer - Posted by ma
Posted by ma on March 23, 2002 at 04:54:11:
i have an option on a house in foreclosure and have negotioated a substantial discount with the second lienholder. the seller only wants out of the house and the option price is 'whatever i negotiate with lenders, not to exceed $95k. in actuality ive gotten the three lenders down to about 91k.
how do i now exercise the option if i have a buyer at 103k ?? do i do a sales contract with the seller then assign it to the new buyer? do i do a sales contract between my buyer and the seller and somehow cut myself in for my profit… if i sell the option to the new buyer then he will see how much i’m making. the badder news is is that i have to make this happen this weekend. thanks…
Re: Option / Found a Buyer - Posted by MicheleCO.
Posted by MicheleCO. on March 24, 2002 at 14:39:44:
If you do a double close, closing costs would eat a lot of your profit anyway. Explain to your buyers by doing this as an assignment, you are able to keep costs lower. Do the buyers really want the house? Do they know you are the pricipal in the deal and not the owner? I am always honest with buyers. I say I have an interest in the house that I am marketing. Give people some credit; they know people do not do not give away houses, and there is mark-up involved in the buying process. Are they working with an agent? Are you to sell it? If not, then they are saving money in commissions. Explain how what you do is similar. A small profit for you should not really make that much difference for them anyhow. Double closings are great if there is a lot of profit involved and the additional closing costs can be justified as a cost of doing business.