Save costs when Flipping… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on April 06, 2000 at 11:17:07:
When doing a “flip” type deal If you do not enter into legal title and then deed out to the subsquent buyer then you may be able to avoid the expenses involved in a 2nd escrow, applicable deed transfer taxes, etc.
Here are a few ideas to avoid those expenses although they may require a disclosure of your “profit”. This should be weight against actually taking legal title and then reselling the property where disclosure of your profit becomes less likely.
You might option a property for one price and then simply SELL your option rights. In that way the buyer of your option steps into your shoes and completes the purchase directly from the same seller you optioned with.
Tie up the seller with a contract that is assignable. This serves as a psuedo option and allows you to then assign your purchase rights in that contract to a buyer- again only one set of closing costs here
I am sure there may be a few other ideas that other posts can contribute here,
To your success,