Double Closing

[Rushton]

I have found a local fsbo property in Alabama in which the owner wants to receive 79k cash at closing. While I would like to buy this property, I have found someone else that could be willing to pay 84k. How could I close this deal without being given a "commission"? I think I may have a problem on the HUD-1 disclosure form. I want to buy the property and sell it at the same time with 0 money out of my pocket.

Thanks

 

[HomeGuru]

Don't tell anyone this secret ok.
You have an attorney write
up an option agreement to purchase the property at the $79K. You will need to put down say $1000 to tie up the property but write the check payable to escrow. Then when that is done, you assign the option to the next person for $6000 cash. You also assign the $1000 to the optionee. You will still have to declare the $5K as income for tax purposes but you will not have to deal with a HUD form or closing.