Wholesale (Flip according to Lender) HELP! - Posted by Mike C. (TX)
Posted by Mike C. (TX) on September 08, 2003 at 17:34:07:
I have a house under contract and executed an Assignment of Contract for $8000 which is a great fee in my eyes. Problem is the end buyer’s lender wants a clear paper trail from the Seller to the End Buyer and the assignment is viewed as a flip and prohibited. The end buyer’s mortgage broker tells me I can:
A: File a mechanics lien on the property for $8000 and have the End Buyer execute a purchase contract at the original agreed amount + $8000. That way I get paid out of the mechanics lien out of closing. (This sounds and looks like fraud!)
B: Let End Buyer execute a contract with Seller for increased purchase $8000 and include the phrase " Seller is to pay $8000 of buyers closing costs to XYZ Company for services rendered". (Ok, this is better, but let the End Buyer execute a contract with the Seller and Release my original contract. Give me a break, so now I am no longer in control.)
I am thinking the best situation would be for the End Buyer to pay the assignment of contract and then I can allow him execute a new contract with the Seller at whatever purchase price he wants! However, this is a more expensive house and he wants to include the assignment fee in the purchase price.
Any help, ideas or advice would be greatly appreciated!
Mike C. (TX)