working with wholesalers

[Jason Strickland]

We are working with a wholesaler for the first time on a property.  We have agreed on a price.  What is the next step in the process?  Who writes up the contracts?  Who reaches out to a title company?

Jason Strickland

Sideline Enterprises, LLC

[Preston Dean]

Hi @Jason Strickland

The wholesaler provides an assignment agreement that transfers their right to purchase the property to you. Usually, the wholesaler prepares the assignment agreement. The purchase contract is already between the seller and the wholesaler. 

Either party can open title, but generally the wholesaler will do this because they already have a contract with the seller. However, you should confirm which title company will close the deal — you can request using your own preferred title company if you like, though some wholesalers will prefer one they know. Reach out to the title company yourself once you’re under assignment to verify they have all documents and that earnest money is handled correctly.

Always review the title commitment carefully since wholesales can involve properties with liens or title defects. DONT SKIP YOUR OWN DUE DILIGENCE