Posted by Ken on January 19, 1999 at 17:16:13:
Thanks Tim, you answered my question.
Question About Simultaneous Closings - Posted by Ken
Posted by Ken on January 19, 1999 at 14:49:19:
I’ve always assumed that if I put a home under contract, and did a simultaneous closing with a buyer, that it would be arranged for the deed to be transferred from the buyer to the seller, thereby giving me a clean break, without ever taking title. However, I recently spoke with a real estate attorney, and he told me, that I was wrong, and that I would have to take title, and that the buyer would be paying ME every month, and then I would in turn be paying the seller every month for the term of the contract. Please help.
Re: Question About Simultaneous Closings - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on January 19, 1999 at 15:17:05:
There are many ways to implement the flips that I believe you are talking about.
First, if you use a Lease/Purchase or a Contract for Deed, then your lawyer is correct. You will be paying the original seller, and the buyer will be paying you. Hopefully there is some monthly cash flow in this.
If however, the original seller sells you the property, and your buyer purchases the property using his own financing, then you are out of the deal with cash. This is the much preferred method if you want to build up some cash quickly. Also, you can move on to the next deal without waiting to get your money out of this one.
I don’t think your real estate attorney fully understood what you wanted to do.