Last steps in wholesaling...

4 Replies

Hi BP,

Quick question, the assignment agreement will be going to my buyer as my purchase and sell agreement will be going to my seller, correct? Once finished are proceeds taken through title company 'as in' will i tell them how much i want during our discussion before closing or might it be in the assignment or purchase and sell agreement. Not sure if that makes sense but let me know if you need more info to answer this.

Thank you in advance for your time

Here are the steps:

1. Sign the purchase agreement with the assignment clause in it that allows you to assign the agreement.

2. Have your buyer sign the assignment agreement that specifies the fee they are paying you for taking over your purchase agreement.

3. Present the assignment agreement to the escrow company showing that you have assigned the purchase contract and the fee to be paid by the buyer to you upon the close of escrow.

God Bless You!

Originally posted by @Michael Evans:

Here are the steps:

1. Sign the purchase agreement with the assignment clause in it that allows you to assign the agreement.

2. Have your buyer sign the assignment agreement that specifies the fee they are paying you for taking over your purchase agreement.

3. Present the assignment agreement to the escrow company showing that you have assigned the purchase contract and the fee to be paid by the buyer to you upon the close of escrow.

God Bless You!

Thank you Mr.Evans, this helps a lot. Im curious to know what the steps would be during a double close so that the buyer doesnt see my finders fee.

Why do you care if the buyer sees your fees?  The buyer is the investor with whom you made the agreement to assign your purchase contract so.  We all know right from wrong, but we can rationalize any action.  When you perform a deal from a viewpoint of honesty and fairness, not only will everyone be rewarded, your conscious will be at ease.  Like Spike Lee said, 'Do the Right Thing"!

God Bless You!

I know some people do both an assignment or a double close. I've heard that most people will do an assignment if the profit is under 5k. If it's 10k+ that's where a double comes in. Now if your End buyer is okay with it you can in theory use their funds for the whole thing. Otherwise you would need transaction funding to close the first deal.

1)Sign purchase and sale agreement with  original seller.

2)Clearly explain to end buyers that you are wholesaling.

4)Find a title company that will do a double close. (ours calls it a flip not a double)

3)Sign contract with end buyer and collect earnest money deposit. 

4)After both transactions are closed the title company cuts you a check. 

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