Prior to finding a property I went to a title company and talked about wholesaling and they mentioned they could help me close. Today I got a property under contract. I was so excited as this was my first deal. When I took the contract to the title company they told me they do not do contract with wholesaling. In order to go through, I would have to pay the amount the seller wants first which defeats the whole purpose of wholesaling. I went to another Title company and the same deal. I live in a small town and those two title companies are the only two in the whole county. What do I do at these points? Any advice?
Hi @Abraham Lozano i would love to know what people would do in this situation as well. But you could do a double close, which is what the title company stated.
So maybe go back to the seller and ask for a price reduction that would cover the 1st set of closing costs.
Hope this helps a little but i hope someone else will respond with a better solution.
@Abraham Lozano There are two different ways to wholesale....
1- you do an assignment of contract
2- you do a double close which it sounds like you are trying to do. But, you need to find your own money to close the first transaction with the seller.... you can’t use your buyer’s money (who is buying from You) to pay for your purchase. Most wholesalers use transactional funding for this, will probably cost 1-2%.
Learn some more.
@Abraham Lozano that sucks. I experienced a similar situation on a deal. Just keep asking around. Call everyone. If still no luck maybe an attorney can help you close depending on your state laws
Do a contract assignment. Surely he will know how to put your summer fee on the HUD. If it's a modest fee it's not likely the buyer or sell will have a problem with it either.
What county/state are you located in? We work with investors and escrow agents all over the country so I can check to see if we have an investor friendly escrow agent in your market.
I’m currently live in Texas. A small city named Alpine in Brewster county.