Simulataneous close question. - Posted by Redline

import · March 20, 2001, 4:05pm

Posted by Redline on March 20, 2001 at 20:47:18:

By “minimal” profit, what do you mean? I don’t consider $5-15k minimal for tying up a property and flipping.

As far as being stranded, has this ever happened to you?

Thanks,
RL

import · March 20, 2001, 4:05pm

Simulataneous close question. - Posted by Redline

Posted by Redline on March 20, 2001 at 17:05:07:

When doing a wholesale deal with a simultaneous close, do you (as the investor selling to the contractor) initiate a title search and then leave the policy open for the new buyer? If so, do you pay for this or do you pass this cost to your buyer with all the other closing costs?

Also, how do you protect yourself since you are obligated to close with your seller - if your buyer backs out last minute?

Thanks,
RL

import · March 20, 2001, 4:52pm

Re: Simulataneous close question. - Posted by JoeS

Posted by JoeS on March 20, 2001 at 17:52:44:

I initiate the title work, I will not buy a property unless I can get a mortgage policy. I pass this cost along to the buyer. It is minimal, but so is my profit on wholesales. If your buyer backs out at the last minute, you’re screwed unless you have a backup plan…hard money or another buyer ready to go. Hope this helps.