All Forum Posts by: Lala Mala

@Lala Mala You can still assign.  Obviously the more transparent you are from the start with your sellers, the less problems you'll have at closing.  They know they are selling for a discount, and they know you're a for profit business.  

However, some folks never disclose this or are transparent and worry about their fee.  $20,000 fee on a $20,000 house might be different from a 20,000 fee on a 1M property but at the end of the day if it's solving the sellers problem and they are happy with the purchase price and everyone knew what everyone was doing, there should be no problem.

Yes, you can still double close, you'll just have to pay for your own closing costs.  Depending on who you're working with and what state, it might only be 750-1500 in costs generally.  Then depending on where your deal is, the closing company you use and the scenario you face, you may or may not have to bring your own funds or use a Transactional Lender like me to fund the AB side.  

So weight all of your options, don't stress over it, keep everyone happy and keep it moving.  don't over think it.

Keep it simple and double close so you don't have to worry when it comes to closing and the buyer or seller don't want to close because they see your fee. I had a seller that didn't want to go through with the sale because of my assignment fee. I was able to work it out 

 Never look in anyone else's pocket, If the buyer balks, move on, 

The basic idea of a double close is to maintain confidentiality. How much you are making on a deal is your business, except in Washington. In Washington there are those who are "better than you" who have decided what you can make and what is considered to be "equity skimming" which is up to 10 years in prison. Sorry, when you do business in a communist environment, you have to protect yourself. That means double closings are mandatory and don't brag about it or you will face the consequences. Doesn't matter if it's Seattle, Tacoma or Spokane. I've bought all over the state.

WHAT?? The Gurus didn't tell you this? My oh my. What a surprise. I hope you didn't buy their "training package"

Have a nice day.

If you've got money and want to learn how to do things legally, and stay out of trouble, I'm available, but I'm not cheap. DM me.
 
RCW 61.34.010  https://app.leg.wa.gov/RCW/def...

"The legislature further finds this activity of equity skimming to be contrary to the public policy of this state and therefore establishes the crime of equity skimming to address this form of real estate fraud and abuse."

RCW 61.34.030

Criminal penalty. Any person who wilfully engages in a pattern of equity skimming is guilty of a class B felony under RCW 9A.20.021. Equity skimming shall be classified as a level II offense under chapter 9.94A RCW, and each act of equity skimming found beyond a reasonable doubt or admitted by the defendant upon a plea of guilty to be included in the pattern of equity skimming, shall be a separate current offense for the purpose of determining the sentence range for each current offense pursuant to RCW 9.94A.589(1)(a).

You cannot occupy the property on a DSCR loan, im not sure about hard money loans but to be honest I'm not sure why you would want to take on the harsh terms of a hard money loan for a house hack.

These are investment loans, and for DSCR loans the terms are based on projected rental income and the lenders are calculating their risk based on how certain they are that the property will produce enough income to pay back the loan. They are not analyzing your personal income.