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I’m a little confused on the difference on the simultaneous close and an assignment of contract, or more specifically, when to use one over the other.
And with a simultaneous close, when I was talking to my title company they said they don’t have a problem doing it as long as all parties involved know what’s going on. Should that be a problem and I should look for another title company or should that be fine? I don’t particularly think it will be a problem if I let the seller know I’m buying and selling to someone else. The only x factor I guess would be if I had to disclose the prices.
Just trying to figure out if I should be speaking with another title company…
Thanks!
-Curt
An assignment of contract if when someone pays you to buy your contract. Your “fee” will be a line item in the closing documents so the seller knows how much you make.
With a simultaneous close, the seller does not know how much you sell the property for and the buyer does not know what your contract price was. New laws do require you to disclose to all parties that it is a flip deal… but you do not have to disclose the price
it is always better if you do not have to disclose the price. If you are making a LOT of money, it could kill the deal
I closed on two wholesale flips last month in Dallas and did not have to disclose the price on either one.
Only that fact that I was selling immediately to someone else.
California rules may be different. But you would think all title companies would be the same
Unless you are making a huge profit, should not be a problem to disclose anyway.
I know Archinio make$33,000 on a flip in central CA late last year. You might ask him if he had to disclose
Yeah, I’ve called another title rep and they don’t do simultaneous closes at all so I’m on the hunt.
Worst case scenario is that I’m disclosing and as long as I position the deal as such, I suppose it won’t matter but obviously would prefer to not have to disclose the prices.
Not exactly sure who Archinio is or how to get a hold of him. Could you please point me in the right direction (I already did a search in the forums and didn’t find him).
Thanks!
-Curt
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