Posted by Redline on January 26, 1999 at 12:05:31:
If you assign the contract(what we’ve been talking about) and do NOT do a simultaneous close you will call your investor and say “I have a house at 123 Main Street for $x. Check it out and let me know”. You should give him your price and be pretty firm. Moving all over on the price makes it seem like you haven’t thought it through and don’t know your numbers. If you’ve done your homework and figured out what the rehab will cost, along with carrying, his profit, etc … you should be within a few dollars either way of what he’d consider worth it.
So, yes … he agrees to the price and you hand him the contract he’s going to see what you agreed to pay and he’ll know how much you made. Should be OK if he thinks he’s getting a decent deal also.
On a simultaneous close, you go to close … buy from the seller, go to another room and sell to the new buyer (using two different purchase/sale contracts mind you). This way the new buyer has no idea what you paid for the property and how much you’re making on it.