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Updated almost 8 years ago,

User Stats

46
Posts
6
Votes
Sean Williams
  • Augusta, GA
6
Votes |
46
Posts

Need Some Input on This Scenario

Sean Williams
  • Augusta, GA
Posted

Hi Everyone,

I have a client that wants to make a cash purchase within the next 30 days. They don't have enough cash to purchase the type of home that they want. They will have the money in May.

Let  me know if this scenario will work and play out the way I would like. Keeping in compliance with the title company rules and all, Here is the scenario.

1. I find them a home that they can purchase around $50-$60k, I work out a deal with the seller to do an A-B transaction with them and me. 

2. Then I use transactional funding to sell the house (B-C) transaction. I will be selling to them for a profit , around $70-75K

3. Then I pay off the A-B deal including transactional funding fees using the money that my clients have. At this point I have not profited. They will take possession of the home and not title.

4. I put a clause in the B-C contract saying that they would make monthly payments to me until May which at that time they will pay me the remainder of my selling price and I will profit. At that time they will gain title of the home and I will have made my money and they did not have to use any other financing as they will not qualify for a loan. The money is coming from their retirement that they can't get until May.

Any obstacles I will face in doing this ? Im trying this route because the sellers may not be interested in any owner financing and I'm willing to wait a few months for my profit.

Your help will be appreciated,  Thanks a bunch.

Sean