A to B to C transactions. What is the skinny on these?

Hi Superstars.

I have a seller who signed an "option" contract with an investor. It does not appear to me to be a real offer to purchase, but rather an offer to market for an end buyer with the option to purchase at a lower price. So I am reluctant to ask my title comany to do a preliminary HUD-1 for something I don't quite understand.

Most of the investors who contact me as a short sale specialist want to do something similar to this. Meantime, I've heard from some other agents that these type of Flips or Flops are illegal and I should avoid them like the plague.

Who has a good understanding of the process and legality of these type of deals? Anyone? Could you shed some light on the subject for me, please?


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