FIRST OFFER ACCEPTED, NEED ASSISTANCE

closing costs are generally 6% of the purchase price

Thanks for the respone. I wanted to know if the closing cost would double with doing a double closing. Paying closing cost for buying from bank, then paying closing cost for selling to my end buyer?

This is where I'm getting stuck. I would have to change my marketing if I have pay that much, or my profit is gone.

thanks again

Awesome work - I'm gunna call you after work - my cell phone is out of commision pm me if you need my info again

Brian, if your ARV is 140-150 and the contract price is 73 plus your 20 in rehab you have 93K plus what ever your closing cost will be. Which most of the time the bank will pay the closing but you’ll want to check on that. Most banks will NOT allow you to do a double closing using the buyer’s money. And a good title company will not allow you to do that either that in most states is illegal. You will have to come with your own funds to closing, or you will need 1-day money or “Transactional Funds” that is going to cost you about 3%. You better have a buyer lined up because you will have a hard time getting the money to close.

I would suggest going back and analyzing this much closer. Find out from the title company what they estimate the closing cost to be? Find out if the bank will pay the closing cost, the listing agent will tell you that.

Dig a bit deeper my friend before you jump into this one.
Gene

The thing about the listing agent is that you can only contact them through the site they had the bidding on. I have sent messages, but with no reply. I have a general understanding from another Title company on what can happen.

I do know my closing cost shouldn't be more than $1300, given the price, the title company has yet to be determined by the bank, I am still waiting on the documents to arrive, I was told that the bank will cover closing cost just a minute ago. In the state of California, double closings are legal, the title company just has to do, and the way business has been, most out here will, and if not I know of two. I offered those choices to the bank, but still have not had a reply. I have, 5 interested parties, all of which understand what is going on, they just haven't given me their final decision. One of my buyers is willing to do it at $80k, I just am making sure, triple checking my numbers, to make sure there will be a profit for me.

I have a transactional funding company lined up, I'm just waiting for all the docs from the bank, and my buyer so that I may submit it for processing. They are only charging $2145, the sum of minimum $1750 and admin fee of $395.

What other digging should I be doing?

I am taking any and all advice.

Thanks, don't know where I would be without my DG fam.

Probable still driving trucks.

I put in my offer with my name, I figured that to be the best way to get the offer accepted.

I was sent a Buyer's Supplemental Information Worksheet

a part I am curious about is it offers me to enter "vesting". After asking: buyer type;buyer's name;address;phone;email. It is asking "Vesting(How will the buyer hold title?)

What can I put in this field?

Hi Bryan,

If your offer has been accepted the contract should spell out how much the bank will pay in closing cost. Your Title Co. should be able to figure out pretty close what your A-B closing cost will be. Have your end buyer pay all closing cost on the B-C closing.

With that said it sounds like you may run into some seasoning trouble on the title, where the bankk wants to know how long you will hold the property. Look in the cantract for addendums stating how long they expect yu to hold the property.

If so you may be able to add your buyers name to the contract once it is accepted and let him worry about the closing cost. At closing he/she will need to have another check(what you expect to get out of the deal) made out to you (certified of course) that they will exchange for a quit claim deed from you after the closing.

Hope this helps,

Rodney

Thanks for posting that information. That does help a whole lot. I will look over the contract to see what it says, just in case.

Update: Bank will pay closing cost for A-B, if I stay with the title company they use. Their title company doesn't allow for double closing. However, they do allow for name additions to a title. I just have to submit an addendum to the bank for their approval, before they add my buyers name to the title.

I'm thinking of:

A) Before I submit the signed agreement, have my agent ask for change of title company, AND still ask the bank to pay(even though it states in the agreement that if I change, the closings cost changes)

B) Keep escrow company, have my agent and end buyer addemdum with contract, the only problem is I have to have the signed docs in by 5pm tomorrow, and i have yet to find a buyer