Assignment vs. Double Close

[Brad Noe]

Hello BP,

Greetings from Louisville, KY on Kentucky Derby Eve!

I got started a little over a year ago in real estate investing doing the BRRRR strategy, but I am to the point now where I don't have the time/capital to take on all of the deals that I am finding so I am getting into wholesaling. Here is my question for all you experts out there:

This pertains to the assignment of a contract at closing vs. a double close. I understand the Assignment process I think, but from what I understand for a double close I think I would need to:

- Get the property under contract with the seller using a standard purchase & sale agreement.

- Get the property under contract with the end buyer using a standard purchase & sale agreement.

- At the closing table, I close with the seller using the end buyer's funds, then close with the end buyer, and leave with the amount that is left over from the deal.

Is this correct in general? A few follow up questions: 

- Would we wait to initiate the title search once the second contract with the seller is in place? Do I need to have language in the contract with my buyer stating that the cost of the title examination and insurance are their responsibility?

Finally, when marketing a deal to Cash Buyers where I plan to ASSIGN the contract, I understand that I must be careful in the wording of my advertisement to state that "I am in possession of an assignable contract" as opposed to indicating that I am in possession of the real property itself. Does this same guideline apply when planning to execute a Double Close?

Cheers,

Brad

[Pedro Martins]

Brad Noe , I don't know the answer to your question, but would advise that instead of asking folks that while well intentioned, for the most part don't know the laws, particularly in Kentucky, you should instead go to a local real estate attorney's office (I use Borders & Borders) and ask.
They have always been very helpful in answering my questions and won't charge you for basic advice like that.

On a separate note, pm me if you are looking for another buyer to add to your list!