BiggerPockets

Do you mean assigning a contract vs. a double (or simultaneous) close? Assigning a contract is the easier route, if you can do it. But not all sellers will allow it, and if you're making a ton, you buyer may balk. A double close can be done without the sellers involvement, but requires a cooperative title company, and may require more fees. Should also be careful about hiding information about what's really happening, lest the seller or buyer catch on and nix the deal.

Also, double closing requires your buyer to have cash, hard money, or some other source of funding that doesn't require any seasoning. If your end buyer is a owner occupant with conventional financing, the lender will likely figure out at the last minute you're not actually on title and kill the deal.

Jon

Two things.

1. The process for how you get paid tends to fall out based on how you are setting up the deal. If you want to sell the contract you can charge for the contract. When you get paid is not specific and is generally based on what the two of you agree.

2. If you use a different process (double close for example) you are not selling your position in the contract. You are selling the property.

So, the mechanics for how you get paid will tend to line up with the legal requirements or the way the deal has been structured.

Why does the above matter? Second point.

How and why will greatly depend on what is taking place end to end. Many lenders will not be happy to loan a retail buyer the funds if there is someone in the middle. They want to see the seller on title when they review the documents during underwriting. Other times the end buyer is an investor who is paying cash so they might just want to buy your contract and then have title transfer directly form the seller to them without you being in the middle.

1. The process for how you get paid tends to fall out based on how you are setting up the deal. If you want to sell the contract you can charge for the contract. When you get paid is not specific and is generally based on what the two of you agree.

By selling the contract do you mean assign?
Another question I have that stems from this is, after you assign the contract to someone, do you basically just write their name in after and/or assigns. For your fee? I am a little confused about the whole handing over/assigning of the contract and where your involvement / liability as wholesaler ends.

After they sign the agreement the deal is out of your hands?

Where do you find these documents, or do you have a RE attorney write them up for you?

the only document I have come across from a fellow RE investor is attatched below, however, it seemed a little lengthy for a wholesale contract?

Hi all,
I know this is an older post but RD, any chance you could post your wholesale/assignment contract? I've been going through countless books that I have and have yet to come across anything I can use at present.
This would be a great help if you can. Thanks!!

Robin -
Why don't you just upload what you've got to the thread here so everyone can access it?

That would be helpful to more than one person, then.

Thanks!

Hi,
When you reply on a post, you enter your message, then below the message box is a place to click on " Add an attachment" . Click on that, then there will be a place that says " file name" and " browse" . Click on " browse" and then you should be able to upload whatever your file is from wherever it is currently filed on your computer. Good luck, Mike.