A real estate wholesaler holds a $4.5 million contract and finds a buyer willing to pay $7 million. The speaker explains how to pocket the $2.5 million spread through contract assignment or simultaneous closing, with a lender funding the original purchase and the buyer's money covering everyone at the table.
Chapters
on this situation, what would happen is I've got a $4.5 million contract, and then I've got a guy that I signed that with and he's selling me the building. Hold on. And then I've got another guy behind me who wants to buy it for $7 million. And all I would do then is just assign that contract on an addendum over to the higher buyer. And then at the closing, they would pay the seller his money and me the remainder. Right. And so that's called a double close. No, that's called an assignment. Okay. The double close is that I have to have money to close, pay off the seller, then I can sell it to my buyer, execute that contract, and bring that money into my pocket. All at the same time. All at the same time, at the same, at the same table. So I need a lender to lend the $4.5 million to me to give to the seller. 15 minutes. For the hour and 15 minutes it takes to do all the paperwork. Then that guy on the other side that bought it from me brings his $7 million over. I pay off my $4.5 million and take out all the closing costs out of the remainder, and then whatever's left after all the closing costs and all the bills are paid is mine, right? So that's how that works.
