Wholesaler 路 Newburgh, NY 路 Member since 2017 路 32 posts 路 4 votes
Quick question. My buyer wants to see my purchase and sale agreement I have with the seller. Is this normal? My concern is that he'll see how much Im making on the deal and lower his offer. Thx馃彙
If you're closing on the property, then reselling, none of his business. If you are assigning your contract, then of course he has to see it, as That is what you are assigning, and what he is obligating himself to.
Will Barnard No ones getting defensive. You said "If a wholesaler is worried about those things then it is quite probable that there are some legal and or ethical issues in the deal".
I'm simply asking what legal issues are you referring too? If your unable to articulate those "legal issues" then I understand. But my reputation on this thread and website is important to me and if your going to suggest that I'm doing something unethical then I advise you to explain!
Yes for double the closing costs (Thousands each transaction) you can double close, or pay a couple hundred, get licensed, be on the HUD-1 form, legally grab a commission and not have to lock the property up plus are able to advertise to the general public.
I understand you point of view as a licensed agent (used to own a remax franchise myself) but there are as many disadvantages to being licensed as there are advantages. I do not like wholesaling myself but I have assigned some contracts and recently had one where the end buyer was given a price and when he was sent the contract he backed out because I was making a $55k profit.
When you have a license it is illegal to have net listings so you can not charge more than a standard commission rate. Most commissions are from 6% to 10% and then the brokerage often takes up to 40% (yes I know some flat rate ones are out there) so it is often much more profitable to not have a license. There is also all the disclosures that basically tell the person you are trying to buy from that "I am a real estate professional and prob trying to buy this property for far less than it is worth and I am going to make a big profit". I have been on both sides and the side without a license if much more profitable.