Closing on a Wholesale Deal.....Please Explain

Closing on a Wholesale Deal.....Please Explain

Member since 2009 · 13 posts · 0 votes

Good morning,

Please forgive me if the question may sound a little naive, but I'm new to this and need some things cleared up. Once a home is under contract for a wholesale deal, do I need to find an attorney or a title company to close on the home? Does it matter if I choose a title co. or the attorney? I'm assuming there will be closing costs, who would be responsible for these,my seller or the the buyer? Thanks!

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  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    17y

    I believe in your part of the company closings are done by an attorney. But find some local investors and speak with them. Try out South Carolina REIA listing.

    Since you're hoping to walk away with cash, you'd want to put the costs on the buyer and seller. With an assignment, your fee should just show up as a payment, and all the costs would go to either the buyer or seller, as determined by local custom.

  • Investor · Pawleys Island, SC · Member since 2008 · 1k+ posts · 837 votes
    17y

    In SC, a deed can not be recorded unless it is prepared by an attorney. As Jon mentioned, SC is an attorney state rather than a title company state, so you may as well have an experienced real estate attorney handle your settlements.

    You don't say whether your wholesale deal will be accomplished in two closings or as a contract assignment.

    At least in SC, closing costs are commonly split between the buyer and the seller, but who pays what is negotiable. If you want closing costs paid by your seller and your buyer then you need to specify that in your contracts.

  • Member since 2009 · 13 posts · 0 votes
    17y

    Thanks so much Jon! That cleared it up for me!

  • Member since 2009 · 13 posts · 0 votes
    17y

    Thanks Dave, I guess I really need to get more familiar with my state's real estate laws. Thanks again!

  • Real Estate Investor · Tuscumbia, AL · Member since 2009 · 15 posts · 1 vote
    17y
    Originally posted by Warnetta Epps:
    Good morning,

    Please forgive me if the question may sound a little naive, but I'm new to this and need some things cleared up. Once a home is under contract for a wholesale deal, do I need to find an attorney or a title company to close on the home? Does it matter if I choose a title co. or the attorney? I'm assuming there will be closing costs, who would be responsible for these,my seller or the the buyer? Thanks!


    That is a good question, Warnetta, I'm a newbie
    also and was wondering. I had someone tell me that
    it was good to have a title company than has an Attorney.

    What type of state is Alabama?

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