Should I hold the end-buyers hand through process after assigning contract?

Here's a question I'm not sure I've seen answered here before. After I have a contract assigned and the fee paid upfront, should I hold the end-buyers hand throughout the "closing" process? Also, once the contract is assigned do I have a legal obligation to help the end-buyer follow through on that contract?
I assume you'd only have to worry about these problems if the fee is collected upfront. Otherwise you'd have to follow through to ensure your fee is paid......right?

Edited: 06/26/2010 at 08:08AM by Jesse R

Jovan Johnson

Real Estate Investor · los angeles, California

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Icon_minipost May 04 '09, 04:11 PM

You do have the option to hold the buyers hand thru the process but in most cases you will not need to because you should be working with all experienced buyers they dont really need your help.

you do not have any legal obligations to the end buyer, you are selling the property "as is" and the buyer understands that, he has to do his own due diligence

Edited: 06/26/2010 at 08:08AM

Jesse R

Rehabber · El Paso, Texas

507 posts
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Icon_minipost May 05 '09, 01:06 AM

That's exactly what I was thinking. I'm just not sure if this still applies if I assign a lease option or owner finance to an average joe. What do you guys think?

Edited: 06/26/2010 at 08:08AM

Jon Frame

Wholesaler · Nazareth, Pennsylvania

77 posts
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Icon_minipost May 05 '09, 04:14 AM

I offer full service to my buyers. We always include a trusted and experienced contractor with rehab quote, title company, property management, etc. We work with a lot of new investor's and will always walk through the process with them. We are also starting to do Project Management as well which will include walking through the rehab process with the contractor of their property.
This is all of course an option for the buyer.
This will separate you from the average wholesaler as well.

Good Luck. :D

Edited: 06/26/2010 at 08:08AM

Jesse R

Rehabber · El Paso, Texas

507 posts
2779 Influence
7 Awards

Icon_minipost May 05 '09, 04:47 AM

I offer full service to my buyers..........This will separate you from the average wholesaler as well.

This sounds like the right way to do things if you're working with an investor. Otherwise, when dealing with a home in move-in condition, would you still hold the end-buyers hand if assigning a lease option or owner finance? Once they sign the contract can I cash my assignment fee in and let them deal with the original seller?

Edited: 06/26/2010 at 08:08AM by Jesse R

Jon Frame

Wholesaler · Nazareth, Pennsylvania

77 posts
681 Influence
3 Awards

Icon_minipost May 05 '09, 05:02 AM

If you do get the check at the time of the assignment, as opposed to the settlement, I would just hang on to the check until settlement just in case anything blows up. I always get paid at the assignment and everything has gone smooth but I did have a couple of close calls before close. I also had to return a small portion back to the buyer.

Remember, it is your reputation on the line. You don't want to hold anyone accountable for issues that they may never have any control over. Some buyers may even just get cold feet before close, at that time play it by ear. You may want to keep the earnest money that you had to put up front. I even had a buyer walk away before close and never even ask for his wholesale fee or deposit back, but that's not going to be your usual case.

Edited: 06/26/2010 at 08:08AM