Back to back closings for REOS/owner occcupied props
Hi DG gang,
And firstly forgive me because I am sure these subjects have been covered in other threads but can use some help.
I am trying to give comfort to my realtor that is helping me find REOs and OO props for around $150K that I am looking to do back to back closings with my end buyer. I found a website that talks about simultaneous and back to back closings (and the website does say that it is different for each state)and will try using this and that this is no different then a flip, but I don't think they understand the concept of me using Coastal Funding as my HML and that when the end buyer investor closes (the 2nd closing) that the HML gets their money and fees (that I have built in to my calculation and so is my profit).
The escrow company that has been approved by Flagship title (Coastal's title co) has been doing this for a long time, not many do.
I know they shouldn't care but like most they are scared that they are doing something "illegal". I have explained all of this to them in an email (which I admit can be confusing so we are talking face to face tomorrow to go over the concepts and the #s).
Just wondering if there is anyone that has done back to backs for REOs, if you have had any problems with the banks (do you have to tell the banks that you are re-selling the prop after you lock it up???)
I may have to contact an atty to give them comfort or just have them speak with the escrow co. I live in CA if they makes any differnce in your response.
Hi DG gang,
And firstly forgive me because I am sure these subjects have been covered in other threads but can use some help.
I am trying to give comfort to my realtor that is helping me find REOs and OO props for around $150K that I am looking to do back to back closings with my end buyer. I found a website that talks about simultaneous and back to back closings (and the website does say that it is different for each state)and will try using this and that this is no different then a flip, but I don't think they understand the concept of me using Coastal Funding as my HML and that when the end buyer investor closes (the 2nd closing) that the HML gets their money and fees (that I have built in to my calculation and so is my profit).
The escrow company that has been approved by Flagship title (Coastal's title co) has been doing this for a long time, not many do.
I know they shouldn't care but like most they are scared that they are doing something "illegal". I have explained all of this to them in an email (which I admit can be confusing so we are talking face to face tomorrow to go over the concepts and the #s).
Just wondering if there is anyone that has done back to backs for REOs, if you have had any problems with the banks (do you have to tell the banks that you are re-selling the prop after you lock it up???)
I may have to contact an atty to give them comfort or just have them speak with the escrow co. I live in CA if they makes any differnce in your response.
Thanks much,
Neil