Hi, my name is Russell. I am new to investing. I have a seller who provides me with deals. I have a buyer who says they have cash buyers. I want to provide my buyers with the deals, but my seller says that he wants to deal directly with the buyer. So, I will be the buyer using transactional funding. In order to use that funding, the lending company says that my buyer has to put money in escrow for the full amount. My buyers say that they don't want to do it that way. Why? I don't know!!! If they have cash buyers they shouldn't have a problem with that, yet they say that their buyers don't want to deal directly with the seller unless they have a personal relationship with the seller. So, they want me to sign a fee agreement and just let the buyer and seller work it out. Once its all said and done, I'll get my fee!!! Something doesn't sound right! Can someone help me understand contracts and how to structure the deal so that everyone can win? Thank you so much!!! I appreciate it!!!
Sounds like a chain of three wholesalers, good luck. But, once you have the property under contract, and then once you sign a contract with the end buyer, and once you get to closing, THEN the end buyer delivers all the funds to closing (not a 100% EM deposit), THEN your transactional funder will release his funds..
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