OfflineOk, so I have a house under contract to purchase and I just showed the house to a perspective buyer who told me that they want the house with the proposed upgrades. Is there anyway to complete this deal with just one settlement and not two. The house is a REO and the seller's agent is not one that I use. The perspective buyer I have is from a separate agent (one that I use on a regular basis). if I just purchase the home and complete the repair and then have a second settlement I end up spending unnecessary money on two settlements. Any advise on this would be appreciate. Thanks.
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You're also wasting money that way. The only ways I can think of to avoid 2 escrows is either the "Instant Equity Exchange" strategy (which IDK how successful those are with REO's) with your profit listed as a "fee" of some kind OR assign your sales contract to your end buyer (which must be done by your attorney, and will most likely anger seller's or buyer's agent because they don't know what that is) and get paid on the side before the sale closes. It CAN be done, but if your buyers are dictating upgrades to you before they commit, proceed with a LOT of caution. I suppose you could take your profit and attach it as a lien on the house, but there has to be enough equity to cover it, and you'll need the seller's permission to do that. Best of luck to you...
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
I will profit from the upgrades. My initial plan was to purchase the home, rehab it and list it again to sell again right away. I found a buyer who would purchase at my asking price with all the rehab completed. She is getting a conv loan and so all rehab must be done prior to her being able to close. Assigning won't work in this case b/c she needs a move in ready home. I don't know if it is possible to avoid a second settlement I am just hoping someone out there may have experienced something similar and were able to somehow avoid a second settlement with all cost involved with it.