As a real estate investor, it is important to monitor trends and news, but you must also be able to separate fact from fiction! One of the biggest stories of false allegations in the media recently that the double locks are illegal. They are not.

Disinformation has emerged from a series of accusations that the media have described as “property flipping scams”, which is completely different from the double lock. In the double-closure of the fund, the second closure will be used to pay the first fence.

A receiver is such that the agent or broker to make the exchange of goods and profits, without used their own money .. It is a legal procedure, ethical and profitable that investors have used for a century or longer to produce wealth.

You probably have about what to buy in the media as property flipping illegal programs for people to read cheap properties are poorly maintained and repairs have been mentioned carry arms, and sell the property to buyers naive ridiculously high prices, well above the market value.

In general, it is not the sale is illegal, but the loan process as any forward in the chain of conspiracy to loan applications for illegal loans, in connection with an incorrect assessment. As a result, a buyer with finding a home more awards and loans, they can not repay.

Unfortunately for the crooks, many loans insured by the Federal Housing Authority (FHA) is a government authority that has recognized the regime and many of the parties now face the long arm of the law!.

If you read a newspaper article or hear a real estate agent or mortgage broker claim reversal is illegal you know that they are wrong, and you must continue to search for a minute to take position.

The controversy has some impact on the industry refuse in any capacity and escrow companies, closures had a double. Those who continue the practice, are correct about the risks of fraud.

As a real estate investor, it is up to you to keep control of your money before the trial, and questions remain to anticipate that the end may affect, especially if you buy and sell property quickly with a large double bed.

Be aware that some financial institutions a seasoning “process, the ownership of the seller have been established. This means that unless the seller is the owner of the property for six months or more of the financial institution, the proposal to be treated as suspicious and rejected the the request of buyers to borrow money.

This will leave you in trouble if you bought the property cheap and sell in a hurry to win. aware of before signing the contract, to ensure that the “Buyer’s Agent and are consultants for the transfer of ownership to us all that it might be a problem seasoning.

Better yet, if you really control the whole process, you will be able to the buyer to a lender that is double-end and ensure that there is a smooth guide. Remember, the spice is just a proposal subscription that is not a law that must be executed.

Please do not apply to senior management, if it be a problem and revenue is expected to stall in the Red Ribbon appears. You must also be aware that if an FHA insured loan the buyer that they give the commitment of the period of property as FHA rules to prevent the seller has requested, the property must have at least 90 days in possession before they sell further.

There are no exceptions to this rule. This includes the buyer with an FHA loan goes into a double degree, but there should be no problem if the repair and return of the product that it intends to sell it last for 90 days for repairs, then the property.

Overall, FHA and subprime lenders rely on that claim. FNMA guidelines have to buy no restrictions on the provision of means, a flat, if the seller “turning over fast.”

Do not panic if you experience some delays to the signing of the coupling in a double degree situation. You can perform what is called a relationship “reverse”. In this case, you have to withdraw only your redirect contract with the buyer and the last owner of the business.

In this case, replace your “tax” on the profit potential of the case. Make sure that the rules were clearly documented and secured by a lien on the landlord, when you receive your tax return at the fence.

Double closings are attractive to investors, to the houses because you can throw around so that the financial requirements of the rapidly moving money from one account to another, keeping secret the purchase price does not suspend your contract and work with less liquid buyers because the assignment “Tax funding.

The first step is to find a lawyer who understands and is willing to perform the double degree for you. Then you must convince the buyer, it is a good way to go. Planning Double closing is the biggest challenge in the process and involves a certain element of risk.

There is almost always a quick last-minute problems which mean that the resolution be delayed by a few weeks until the end of your contract, which in turn can lead to lose binder, then losing its credibility can reneging on a contract.

Make sure that all these factors into the contract – you will save a lot of stress! Make sure you know all the risks and processes before a double closing.

One of the key strategies of the work involved and foreclosures in short selling is the art of the scale. The basic idea of a “flip” is to negotiate the purchase price from lender foreclosure (based on their opinion and your broker price negotiation basis), lower than the price at which the property could be sold to another buyer.

If the difference between what the bank accepts the purchase price of the end user is quite wide (including closing costs, etc.), this difference in the figures in a profit for investors agree Nice lead.

happen normally buy and sell transactions (so-called back-to-back, double-A and B, or simultaneous closing) would, on the same day or even minutes apart. In the “old” days it was quite common to have double the whole operation is financed from a single source.

Then closes lenders began to change some terms in their letters of approval. This new language prevents companies in the implementation of transactions in the near double with a single source of funding. The work around the investment community has its own source of funding for the buy-side (side A) and a separate source of funding for subsequent resale (have the ultimate purchaser, the B-side).

This has resulted in two separate accounts with two sources of financing.

Hard money lenders with Flash-called “rises to the double closure in the short sale investor with the necessary funds on the buy-side (side A) provide the transaction. This technology is still in the game but maybe its end.

Recently, the chatter of a few lenders in their letters of consent has been received. The first is as follows:
“There is no transfer of ownership within 30 days of completion of this transaction.”

And now a new one that replaced the chatter on and was added as an amendment to the escrow instructions:

“If the buyer or seller has knowledge or belief of this transaction is in collaboration with or simultaneously with any other sale or transfer, they must notify the settlement agent. If a settlement agent has any knowledge or belief, or is informed of this process is in connection with, or simultaneously to take other sale or transfer, should clearing house for the lender a written permission to continue, or after this contact, the approval is null and void. ”

OK. I hear you, simply use the money “Flash” and the second separated the first close (there are debates about what actually means that 30 days). One question I see is that in the old way, money flash investors were protected against the loss, because the agreement normally closed on the same day sale and funds (Side B) was closed to the key escrow. The big problem is that this “flash cash” lenders willing to almost 100% of market value and resale of the closure is not because of the amount of time that must take place between the first and the second fence.

It will be interesting to see what the work for the market to investors.

I want to watch TV, how about you?

In simple words, there are two ways to do this.

1) Dual / simultaneous closing. They were under contract with the seller and a buyer to return to. Your buyer comes to the end (or cash deposit escrow) at 10:00. You will meet your suppliers, at 13.30 clock and use the money to pay them. Once they leave, your lawyer will cut a check for the difference, less cost. Your buyer receives the deed. She knows the buyer never know what you’re doing. not your seller know that you just sold.

In a closing double or simultaneous closing agent the product of your tenant / buyer and the seller is paid. No money directly from you will need, so its credit card no problem.

Most experienced agents are closing too happy to do a double degree, as they take two sets of fees: a game between you and the seller, and you and your tenant / buyer. The best thing to do is to choose a closing agent (in my area, we use the title / escrow), which can become operational. Tell them in advance and develop a relationship. Then use it again and again. A good conclusion officer is invaluable!

2) The assignment. You have the house under contract with the seller and a buyer to return. Call to invest your partner and tell him you have an agreement to return to him. Your contract already allows for this contract be awarded to someone else, so no sweat. He takes a seat in the agreement, and concludes with the seller. Then you pay your “tax” (which you both agree).
If you are a beginner, I recommend you then close an agreement on an allocation instead of a concurrent. It’s a little easier.