All Forum Posts by: Michael G.

Thanks Kev. So in other words the buyers attorney has to be satisfied with the title report? I'm a little confused because one of the questions in my original post "the cash buyers attorney is going to pull title also thats why all buyers pay for title insurance right? " Buyer C is going through the same process I'm going through when I buy which I would imagine pulling title. Is Buyer C just trying to save himself from the burden of hiring an attorney if he sees something on the title report he doesn't like?

I have a cash buyer who wants to see a copy of the title report before we double close. Said he wants to ensure there are no liens or encumbrances. My first thought is that its a good thing so there are no suprises at the closing table. My second thought is that the cash buyers attorney is going to pull title also thats why all buyers pay for title insurance right? My attorney says that someone has to pay him to pull a title search. I always figured that attorneys pull title and pay the title company after closing. Has any wholesale investor had this experience with one of their cash buyers?

Good strategy Bill. I still have to buy the property which is my conundrum. My initial exit strategy used transactional funding for a day. Using the lease option property I'm gonna need financing for 60 days and I don't have any private lenders lined up.

Exactly! Also, I thought FHA suspended the 90 day flipping rule so I would think we would be in a good place. It's all very confusing to me.

Here's the challenge: I have a few cash buyers in place ready to go on 2 short sale deals in my pipeline.

Yesterday , my attorney says that she thinks there is going to be an issue with double closing on these as there is a NEW law passed in NY State that says there must be a 60 day period between closings or something like this. We are supposed to talk today so I can get full clarification. Apparently the banks are catching on to flippers making profits on short sales and are trying to put the kabash on any proft being made from the immediate buying and selling of the property for a profit. I guess if there is a profit to be made the bank wants it on their books.

Anyway the attorney says that the title company that she uses said they will not provide title insurance for my double closing scenario. She said she could try some other title company but that it may be risky. This all means that both my pipeline short sale deals could blow up as my exit strategy was to double close with a rehab investor.

I'm thinking either do the flip myself (not what I intended but the profit potential is very attractive to me) or some how JV with one of the cash buyers on the deals?

I was also thinking if a) transactional funding lasts for 60 days it would put me right where I need to be. b) If I had a private money source I would also be in a good place to flip it to a rehab buyer after the elapsed 60 day period and just pay a nice chunk of interest for the use of the money.

Either way. I gotta do something and I need feedback.

This is sort of a hybrid issue about financing/wholesaling and short sales so apologies if I posted in the wrong forum. - Mike

@Steve - You are correct. I should share with the community.
In fact, I actually had this conversation in another posting http://www.biggerpockets.com/forums/52/topics/49839-how-to-manage-the-property-manager. Now this was my experience with property managers and I dont want to scare anyone off of PM's but caveat emptor by all means. My opinion is jaded by my bad experiences of over 4 years of hiring 4 bad property managers. The only one out of those four that panned out recently has turned out to be bust.

10% is the norm. 8% in my eyes is pretty good. They are worth it, if they are worth it. Get referrals from other investors. Call me sometime and I will tell you a littany of personal stories of bad PM's. Mismanagement of money, fictious expenses, etc. .

You sold it or you are going to sell it?

Here is a generic fill in the blank form. http://www.totalrealestatesolutions.com/realestateforms/html/BuyersPurchaseAgreement.html

I would think the LBP (lead based paint) disclosure form is the only other form you would need for disclosure purposes.

I sent you one and also an assignment of contract form. I was taught that any contract is assignable unless there is language specifically stated in the contract that it is not. For instance the Board of Realtors contract in my neck of the woods has language that prohibits assigns. For it to be valid we would have to strike it from the contract and initial...not that you asked about any of that. LOL

Thanks Maryann - Ive identified these cash buyers at the county courty house as indivduals and entities who have bought one or more REO properties in my farm area for cash in the last 12 months. Hopefully that means their attorneys should be on board. Only time will tell.