First sandwich

[Arcus 0]

Hello Michael and everyone,

I just completed my first sandwich. Synopsis of the deal is as follows:

Appraised value 83,000

L/O from seller 69,900

L/O to T/B 89,000

400/mo rent credit

4000 option consideration.

When T/B exercises=$$$$$$

Now my question is if my T/B exercises in say 2-3 months, I am not sure how to handle this. I know I generate a purchase and sale agreement or do I simply assign my agreement to the T/B to avoid seasoning issue with lender? If I assign my agreement, how is this handled at closing?

Thanks

Arcus

[MichaelC 160]

Greetings, Arcus, and welcome to The Naked Investor. And congratulations on your first deal!! When that first one is done, the flood gates usually open, so prepare yourself for many more in quick succession!

If your tenant/buyer exercises their option early you have only good options before you. Specifically how you handle the close and the paperwork is going to be best decided locally. Different regions have different ways of handling this. Also, you will find differences between title companies and lenders. At this time I think you would be well advised to contact a title company or two, explain what you are doing, and see what they tell you. Knowing in advance will give you the time to handle it all smoothly and in a way that is most profitable for you.

[ProTech 0]

I had the same question and tried asking around at a local title company and could not find someone that knew enough about the topic. I live in the Chicagoland area, any input would be greatly appreciated.

 

Thanks,

Mike

[MichaelC 160]

Mike, I would suggest you try another individual at that title company, or another title company altogether. If they can't provide you with some answers on what should be a routine matter, I'd be hesitant to do business with them.

Have you tried a Realtor who might be known to work with investors? Or perhaps a mortgage broker who does these types of deals?