What is a SIMO?
A “Simultaneous Close” or SIMO is when you “buy” a property on paper, and sell it to a buyer on the same day.
Here is a step by step on how to set it up.
1. Find a property, and get it under contract. Some important things to include in the terms are the following:
- Make sure you leave yourself some time to find a buyer, make your conditions period at least 2 weeks long, with a closing of at least 4 weeks.
- Under terms, explain that you need access to the property within 24 hours notice for showing to other investors, inspection, etc.
- Give a small deposit, and make sure that you write in that your deposit is refundable.
- Indicate that you have the option to market the property.
2. Once you have the property under contract, have your REALTOR® and lawyer review the documents. It is highly recommended you use a real estate specific lawyer for this type of deal....