Closing On A Virtual Wholesaling Deal

7 Replies

I have been trying to search for a definitive answer on this topic but I can't seem to find one: If I live in PA, but I am wholesaling property in Texas, what is the process of getting my assignment fee? Do I need to give both contracts to my title company in PA for settlement or do I need to find and give both contracts to a title company in Texas for settlement? And if I need to find a title company in Texas, obviously I would not be at settlement so would I ask them to mail my assignment fee to me? Can someone please explain this process to me?

@Travar Taylor. I don't have a definitive answer to your question, but if you close at a Title Company in Texas, they can either mail or wire your proceeds (Assignment Fee) to you. 

In my opinion, your Assignment Fee would be handled no different than a Commission check. Just need to have it stipulated in Contract or other appropriate documentation.

Suggest you contact a Title Company near the properties you are wholesaling in Texas. I'm sure they would be happy to do the closing, and deliver your proceeds. 

@Travar Taylor  Use a title company in the state where the property is located. Give them both the contracts (purchase contract & assignment contract). Shouldn’t be any need for you, as the wholesaler, to attend closing in person. I’ve been the actual buyer/seller in transactions involving properties I’ve bought/sold, and I didn’t even have to go to the title company in person. It can all be done remotely. After the closing, the title company can just send you your assignment fee via wire or mail.  

Originally posted by @Jim Cummings :

@Travar Taylor. I don't have a definitive answer to your question, but if you close at a Title Company in Texas, they can either mail or wire your proceeds (Assignment Fee) to you. 

In my opinion, your Assignment Fee would be handled no different than a Commission check. Just need to have it stipulated in Contract or other appropriate documentation.

Suggest you contact a Title Company near the properties you are wholesaling in Texas. I'm sure they would be happy to do the closing, and deliver your proceeds. 

 thanks jim this makes everything VERY understandable for me!

Originally posted by @Kyle J. :

@Travar Taylor  Use a title company in the state where the property is located. Give them both the contracts (purchase contract & assignment contract). Shouldn’t be any need for you, as the wholesaler, to attend closing in person. I’ve been the actual buyer/seller in transactions involving properties I’ve bought/sold, and I didn’t even have to go to the title company in person. It can all be done remotely. After the closing, the title company can just send you your assignment fee via wire or mail.  

 Thank you so much Kyle! This is about as specific as you can get and exactly the answer I was looking for!

Originally posted by @Jim Cummings :

@Travar Taylor. I don't have a definitive answer to your question, but if you close at a Title Company in Texas, they can either mail or wire your proceeds (Assignment Fee) to you. 

In my opinion, your Assignment Fee would be handled no different than a Commission check. Just need to have it stipulated in Contract or other appropriate documentation.

Suggest you contact a Title Company near the properties you are wholesaling in Texas. I'm sure they would be happy to do the closing, and deliver your proceeds. 

 Closing at a Texas title company is the best bet, but I disagree that its 'no different than a Commission check' if its a payment contingent on the closing of a real estate transaction, that is unauthorized unless you are licensed. Attorney general can easily use these public posts as well.

@Ronald Rohde .  I was referring to the ease of delivery of Funds. I don't purport to know the legalities of whether his wholesaling activities are within the conscribes of Texas law!  

Not sure what @Ronald Rohde means by "unauthorized".  The only significant change recently is that you must disclose that you are wholesaling the contract.  

When I was doing a lot of wholesaling, I opened title as soon as I got the earnest money contract signed to determine the state of title.  When I found the investor-buyer, I gave the title company the assignment contract.  Almost all of my contracts disclosed anyway (years before it was required).  Seller shows up and signs.  Buyer shows up and signs.  Title company mails my check (or however you want it delivered).

Your location is irrelevant.

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