All Forum Posts by: David Littleton

Yeah, my state does attorneys. I called at least 30-40 attorneys today before I found one that will do double closes.

You can't legally market a property until you have equitable interest in a property. AKA a contract.

Sean Terry's Flip2Freedom podcast

He's trying to scare you, but don't think wholesaling is easy because it's not.

It's simple but it's not easy.

Liens all have different priorities. Tax liens are a higher priority than mortgages, therefore, if you foreclose on the lien at the end of the redemption period, you wouldn't have to pay off the mortgage, you would only have to notify the bank and all other lien holders of the foreclosure (see statute per state) before you will be able to foreclose and receive a tax deed (which will need to be cleaned by an attorney $1,000-$3,000).

When you foreclose you will ONLY have to pay off the liens that are ahead of yours, as well as other tax liens purchased by other investors in subsequent years. ie. 2 year redemption period, you buy lien from 2010 due tax, and another investor buys 2011. In 2012 when you foreclose, you will have to pay off the 2011 lien with interest to be able to foreclose.

So I would need transactional funding?

I've been calling attorneys and a few of them have said when you do a double close i have to bring cash to the table as well as the end cash buyer.

So if the property is 50k and I'm flipping it for 60, I would have to bring 50 to closing and the cash buyer would bring 60 and I would walk away with 60k (including the 50k I brought)

Is that correct or should i keep looking for attorneys?

Anyone know a good one?

First of all, I don't think anyone on this thread, nor I, know what this question means. "Use" for what? It doesn't matter whether you call it purchase price or assignment, it's still 105k if you're assessing expenses and need a basis.

Just so there's not any confusion, here's an example:

Assignment:

1. Wholesaler gets property under contract for 100k.
2. Wholesaler decides to assign it to cash buyer for 5k.
3. Cash buyer brings 105k to closing.
4. Property gets recorded as being sold for 100k.
5. Wholesaler pockets 5k.
The End.

Double Escrow:

1. Wholesaler gets property under contract for 100k.
2. Wholesaler gets signs another purchase contract with an end
cash buyer for the same property at 105k.
3. Cash buyer brings 105k to closing.
4. Property gets recorded as being sold once for 100k and then
again simultaneously for 105k.
5. Wholesaler pockets 5k.
The End.

It depends on your purpose. When running the numbers for a flip? Yes.

But it also depends. If you did a double close then whatever your purchase price was, is your purchase price on record.