OfflineI wanted to add something if I may, I'm new here at Dean's website and I just started Dean's real estate book few weeks ago. I had found some foreclosure deals in the area where I live and been making few offers, and one of my offer just got accepted. I was little hesitant to proceed in signing a contract but with all the information I just read it boost my confidence, thanks. Also, the difference of asking price and your offer comes out as profit. Is that going to be in a separate contract? Need help.
__________________
Are you buying and holding? or wholesaling?
If it's the latter, your profit is going to the difference of your purchase price and the price you assigned the property (to the buyer).
For example, if you locked down the property at $50,000 and assigned it to the buyer at 55,000, your profit is 5,000
Since you locked down a foreclosure, you're going to need to double close. Make sure you have a serious end buyer in place (if you're wholesaling) and find a transactional company to provide funds to double close.
In Christ alone, I place my trust.
Thanks, I was thinking of setting up as an assignment as part of wholesaling. Double closing sounds a little complicated according to the book, so I would rather have it as an assignment. Do you know if possible to do a double closing in California? I haven't check with the lawyer or a title company for that matter but I'am working on it.
What kind of a clause(s) do you have in place in the event you don't find a buyer? My understanding is that when a bank accepts an offer, they automatically give you some number of days for inspection, so between now and then you need to find a buyer, otherwise you may lose your earnest money if you can't close. California is a title state, so if you have a good title company to work with, they can help you with a double close.
Aniko
Thanks. I say 60 days that gives me ample of time to find right buyers to do a closing transactions. I have placed ads on craigslist and found buyers on different site but not all are interested. I think I have a pretty good deal on hand that's at least 30-40 percent below market with an additional adjustment of at least 15 percent more. I dont want to loose these deals because of that nice potential profit. Finally, I dont want a loose hard earned earnest money. So, buyers are wanted with fast closing.