- Joined
- Sep 2, 2007
- Messages
- 97
Hello,
When wholesaling a deal is it better to do a simultaneous close or simply Assign the contract? who is having the most success with what?
My understanding a simultaneous close is my lawyer does a buy and a sell at the closing table. This keeps me more in control of the transaction, where as my seller will not find out I`m simply tying up his property to flip it to someone else. My buyer will not find out how much I stand to make on the deal.. This is important since I think if you`re making over 15k the buyers greed glands could swell up and they may refuse to do the deal with you although it`s still a good deal for them. Another good point is when you assign a deal you are no longer in control you are out of the loop, there is nothing to do to prevent the risk of the deal going sour. You can only cross your fingers and wait for your cheque.
Im looking towards doing a simultaneous close but have recently heard from someone if your buyer is going to the bank for financing the bank will want to see that I have title to the property. I don`t want to be on title. Where as if I dealt with a cashbuyer I would not have this problem doing a simultaneous close.
Can anyone back this up?. Or give me some more points why a simultaneous close is not the best choice?. If you`re having success with either strategy please share i look forward to hearing from you.
On a final note my understanding is the AREA Purchase contract in AB has always been assignable so using that and or assigns clause is un-needed. As long as you fully disclose to the seller early on that you may not be taking title that your partner (end-buyer) will be. From there exit with a simultaneous close.
What are your thoughts?
Cheers
Luke
When wholesaling a deal is it better to do a simultaneous close or simply Assign the contract? who is having the most success with what?
My understanding a simultaneous close is my lawyer does a buy and a sell at the closing table. This keeps me more in control of the transaction, where as my seller will not find out I`m simply tying up his property to flip it to someone else. My buyer will not find out how much I stand to make on the deal.. This is important since I think if you`re making over 15k the buyers greed glands could swell up and they may refuse to do the deal with you although it`s still a good deal for them. Another good point is when you assign a deal you are no longer in control you are out of the loop, there is nothing to do to prevent the risk of the deal going sour. You can only cross your fingers and wait for your cheque.
Im looking towards doing a simultaneous close but have recently heard from someone if your buyer is going to the bank for financing the bank will want to see that I have title to the property. I don`t want to be on title. Where as if I dealt with a cashbuyer I would not have this problem doing a simultaneous close.
Can anyone back this up?. Or give me some more points why a simultaneous close is not the best choice?. If you`re having success with either strategy please share i look forward to hearing from you.
On a final note my understanding is the AREA Purchase contract in AB has always been assignable so using that and or assigns clause is un-needed. As long as you fully disclose to the seller early on that you may not be taking title that your partner (end-buyer) will be. From there exit with a simultaneous close.
What are your thoughts?
Cheers
Luke