Posted by Warner(ATL) on May 25, 2000 at 07:42:52:
Ben,
I think the answer lies in the potential resentment of your seller when they look at the Hud statement and see that you are making a profit off of their home. I usually do not tell the seller I am flipping the property until closing (if then), or a situation arises where the the deal may be jeopardized. My rule is if 3k and under I “may” assign and tell the seller I am flipping. I’m not concerned with the approximate $300 extra closing costs incurred in a simo if I am still making a profit.
I was recently faced with a delimma about whether to do an assignment of a contract or do a simultaneous closing. According to Ron LeGrande, one should do simultaneous closings whenever possible. The only problem with that is the title companies want to charge you for two separate closings. I would really take a beating on profits!
However, unlike the simultaneous closings where the buyer doesn’t know how much you are making, the assignment exposes it all. So my question is which do I do when wholesaling properties?