Physically being present during closing as a wholesaler a must?

Question

Hello all!

Is physically being present during a closing a MUST out of state (I would be wholesaling the properties)? I am in Florida and I own a Real Estate business called Home Hustlerz LLC but I am venturing out into other states like Missouri. I have a friend who is willing to help me out that lives in Missouri but he is not a business partner (although I said I would pay him a small percentage for helping me).

Question #1: Do I have to be physically present during closing (With me wholesaling the property)?

Question #2: If NOT, can I have my friend sign under my business (My LLC will be the name on the contract where the check will be made out to).

If the answer is No I do not have to be present but also NO that he cannot sign for me, what are some of my options? Maybe do it all electronically with the title company?

(Sorry if I sound like a beginner. I am a beginner and I have just started my business full force in Florida!)

Ned Carey · Answer

@Andres Diego yes that is correct, closing can be done remotely. Next day expressing the documents is most common. But sometimes a title company local to where you are can do your side of the transaction.

Samuel R. · Answer

Thank you, @Andrew Holmes and @Dustin Haviland for your responses. I have taken notes of the above.

First off Andrew, That is a very impressive portfolio you have! Congrats on all of your success! My market is absolutely flooded in South Florida for all types of investing. I am still actively doing deals in Florida, but I have ventured out into less competitive regions for a higher return on my time. I want to spend more time doing deals rather than finding them while I grow my business. In the areas where I am looking, there is a much better ratio of investors to potential properties which makes my advertising costs less, less time spending on finding quality deals, and more time doing deals and making money. I utilize the internet very well and I can basically find out anything I need to know about an area before I invest there. You can go on google maps and see the area first hand now and see the entire street where your potential property is. That is basically how I am able and comfortable doing business out of state. I would love to connect with you so feel free to contact me at any time. At this stage, I am all about creating a quality network of people around me. I love connecting with positive people who are at the level of success where I would like to be within Real Estate Investing. Thank you guys!

Andres Diego · Answer

@Ned Carey Mostly ~ Seems like it's just a matter of coordinating with the title company.

Just to clarify, I wouldn't even need somebody to represent me at closing as long as all documents are signed & delivered (physically or electronically) beforehand on my end, correct?

Ned Carey · Answer

@Samuel R. no you don't need to attend but you do need to keep on top of the title company to make sure they understand and will collect and send you your assignment fee. In an assignment deal the end buyer will have an assignment of contract agreement. There is nothing for the wholesaler to sign at closing. (some title companies may be an exception and want you to sign something or even put you an the deed)

If you are doing a double close they you do need to sign documents on both transactions. This can be done by express mail or some title companies will allow a resolution for someone else to sign for the company.

@Andres Diego does that answer your question?

Andres Diego · Answer

@Dustin Haviland Can you elaborate on why a wholesaler wouldn't need to attend closing if doing an assignment, and how to go about doing so? Thanks!

Dustin Haviland · Answer

Samuel R. Part 1: Depending on the way you have structured your transaction you do not need to attend. If you are doing an assignment, you do not need to attend. If you are doing a back to back closing you will need to attend.

Part 2: If you are a single member LLC you can prepare a LLC Resolution appointing temporary power to a friend for the specific transaction. It is cheaper, quicker, and easier than a POA.

Andrew Holmes · Answer

Samuel R. 1 & 2:  Both are No you do not need to be present for the closing. Depending how the closings are handled in Missouri an attorney or a title company or your friend can close the deal with a POA or you can over docusign or email the docs.

I have heard a bunch of wholesaling gurus talk about doing virtual wholesales out of town. Never really seen any numbers of someone that does it consistently. We do about 55 to 60 wholesales per year beside our Fix and Flip business and managing a portfolio of over 160+ properties but I would be totally lost doing wholesale in another city.

Would love to know about your progress and how out of town wholesaling works out. Personally I have always thought that to do wholesale you really have to have the right pulse of that area not sure how you would do that remotely but wish you the best in your new ventures.

Physically being present during closing as a wholesaler a must?

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