Wholesaling in Northern California

4 Replies

I have questions on wholesaling. Example, I find a deal for 300 K, and sign a contract with seller. The contract has and/or assignment clause. Now, do I bring it to a title company to open an escrow? Now I find a buyer and assign a contract to. Now I would like to charge an assignment fee (20K). Do I tell the buyer the price of the property is 320 K? Or do I tell the buyer 300 K, with 20 K assignment fee. Have anyone closed a deal in the Bay Area?

I assume your question really is "should the buyer know how much my markup is?".  Good buyers doesn't care how much you make as long as the number works for them.

Eric,

I have done a wholesale deal yet. My question is how should I deal with the buyer. Should I tell the buyer that I am assigning the contract to them with a fee? Or what is the best way?

Thanks,

Buyer usually aware the price you give them includes the assignment fee. So you can just tell them, it's 320k including my assignment fee. 

Originally posted by @Account Closed :

Eric,

I have done a wholesale deal yet. My question is how should I deal with the buyer. Should I tell the buyer that I am assigning the contract to them with a fee? Or what is the best way?

Thanks,

The buyer will find out either way because your assignment fee is going to be listed on their final closing statement.  

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