"Back to Back" Closings vs "Assignment of Contract" Closings

[Matthew T.]

I was wondering which one is better to do for investors who want to wholesale real estate.....a "back to back" closing where transactional funding is used OR a "assignment of contract" where the investor signs over his or her rights to an end buyer? I'm confused about which one is better or safer to perform. Also, what if an assignment of contract is illegal in one state that an investor resides in can an investor use a title company that's outside of their state to perform an assignment of contract? Thanks!!

[Stinson Bland]

Doubling closing is going to cost YOU money (transactional funding has a cost).... Assigning the contract shouldl not cost you anything. Your end buyer or seller pays the closing cost if you've properly written your contracts. It's all in the paperwork and you should speak to someone who has REAL experience in your market. I spent a lot of time with my title office while completing my first few deals.

Regarding your sexing question, you should speak to a real estate attorney in your area. Luckily for me, my title office is also my real estate attorney and she's the president of one of my reia groups.