Does anyone know if double closings are allowed in NC? Specifically the Raleigh area? New to wholesaling.
@Derek Johnson is double closing the only way you can close the deal on this one ?
Thank you for responding Vick. I could do an assignment fee also, however, wouldn’t want to give this particular amount away and lose a potential deal.
where is the property?
I don’t currently have a property under contract. I was driving when responding so my response to Vick was theoretical. I didn’t realize his answer was under the premise I was closing on one. For that I apologize. I have been following Steve Terry and he recommends in his course to only assign contracts if the deal nets $10,000 or less, and to perform a double escrow on deals that net more than $10,000. This is because you don’t want to give away the fact you are making more than $10,000. So my question is, in NC particularly the Raleigh area, are double closings allowed? I get conflicting information on the matter. Thank you in advance.
@Derek Johnson yes you can double close if you have the funds to wire into the attorney to cover the purchase or you borrow them. They can’t use the end buyers funds to cover your purchase in NC. At least the 3 attorneys ive asked have told me that. Does that make sense?
*no legal advice given*
You must know a title company that is going to do your closings. Just ask them.
@Uriah D. So basically I can only assign the contract if I don’t have the funds to purchase the property up front correct?
@Derek Johnson in NC, that is the way several attorneys have told me it is to be done. These are investor specific attorneys also. If you feel bad about an assignment fee being too high then either the deal isn’t that good for the buyer or it is priced too high. I’ve done very few wholesales as it’s not my Business model however, I never felt remotely bad about the fee. If the buyer wants the property and feels it’s a good price then they should not question your fee.
@Pete Barrow NC doesn’t use title companies to facilitate closings
@Uriah D. Thank you so much for the help. It’s great to know people are willing to help others become successful. I look forward to learning more from people like yourself who are out there doing the very things I would like to do one day. Thanks again.
@Derek Johnson best of luck out there. If you find something let me know. Maybe I can be your first buyer. If you have any further questions feel free to reach out.
1. Double Closings are allowed...different attorneys have different ways that they do them. We don't use title companies to do closings in NC, we use attorneys (some BP comments will reference their State's way of closings, which often have title companies.
2. If you want to do a DC but don't have the dough, borrow from a lender. We fund SDDC's all of the time here in Raleigh.
3. In terms of assigning or double closing, $10K is a reasonable rule of thumb. The issue is whether a seller seeing the assignment fee will be upset and walk the deal or not. The investor on the back end will likely be less concerned about how much money you make, as long as the deal works for the investor.
Derek, If a buyer/investor is willing to walk from a good deal because you are making money on it, really any amount of money, then you have the wrong buyer. I could care less if the wholesalers I work with make a lot on a deal and I still have a good deal on my end. It is too hard to find the right properties today and good wholesalers work their butts off so I am happy to pay, your buyer should be too.