Cape Cod, MA · Member since 2014 · 16 posts · 4 votes
To any land pros. I have 2 sellers I saw today. Trying to land my first land deal. When I contact the seller and if we agree how do I structure the contract between me and them for wholesaling to my buyer? I downloaded a contract from Jerry Norton for house flipping and plan to use that unless somebody can recommend something better?
How do I go about contracts between me and seller/ me and buyer. Any money deposits, escrow, title company, and closing. I have a builder lined up, have seen a piece of land but haven't called the seller yet. I want to know how to proceeed with the seller first to get the property under contract, and then how to deal with the seller. I have no money to put in the deal !
Lender · Hinton, WV · Member since 2025 · 128 posts · 53 votes
1y
Andy — congrats on taking action and lining up sellers + a builder, that’s the hardest part for most people. Structuring land deals for wholesaling isn’t much different from houses, but here are a few things to keep in mind:
1. Contract with Seller
• Use a Purchase & Sale Agreement (PSA) with an assignability clause (“Buyer and/or Assigns”). That way you can assign your interest to your end buyer.
• Make sure it clearly states closing timeline, price, and who pays closing costs.
2. Earnest Money / Escrow
• Some sellers will require earnest money. You can often negotiate this low ($100–$500) or use a “non-refundable option fee” if they push back.
• Escrow/title company holds the money and facilitates closing.
3. Assign or Double Close
• Assignment: You sell your contract to your builder (end buyer) for a fee. Quick and low cost, but the seller/end buyer will see your fee.
• Double Close: You close with the seller and immediately resell to the buyer (same day or within days). Higher closing costs but your assignment fee isn’t disclosed.
4. Title Company
• Make sure you work with a title/closing company comfortable with wholesale assignments. Not all will do them, especially with land.
5. No Money Down?
• If you negotiate a small earnest deposit and build in a long enough inspection period, you don’t need much upfront. Just make sure your builder/end buyer is lined up and ready to close within your contract timeline.
Bottom line:
• Contract with seller: PSA w/ assignment.
• Secure it with minimal earnest money.
• Assign to your builder or double close depending on fee size + comfort level.
• Let the title company handle the mechanics.
Curious — is your builder ready to put down earnest money once you secure the contract? If so, you could structure it so their deposit covers yours, making it a true no-money-out-of-pocket deal for you.
Cape Cod, MA · Member since 2014 · 16 posts · 4 votes
1y
Thanks Jackie.
So, at this point I need detailed information on how to proceed. I have a PSA with an assignability clause. I don't know what time line since I have not dealt with the buyer before about closing time. I am just going to present this property to them so not sure if they will buy it. I will be negotiating price with seller. I assumed buyer pays closing costs after assignment.
How do I choose the escrow company and at what point do I do that? Is there any clause I can use with the seller if I put it under contract protecting me from owning the property in case buyer does not buy?
Also, is there a general rule for how closing costs are calculated or is that per escrow company discretion?
Wholesaler · Portsmouth NH · Member since 2019 · 208 posts · 95 votes
1y
You're on the right path, Andy. Keep it simple: put the land under contract with the seller first. Use a basic purchase agreement with an assignability clause, that’s what gives you the ability to wholesale it. Then once it’s locked up, you find your end buyer and use an assignment contract to pass it along for a fee. A title company familiar with assignments will help walk you through both sides. Happy to jump on a call and help you through this. Feel free to DM if you would like.
To any land pros. I have 2 sellers I saw today. Trying to land my first land deal. When I contact the seller and if we agree how do I structure the contract between me and them for wholesaling to my buyer? I downloaded a contract from Jerry Norton for house flipping and plan to use that unless somebody can recommend something better?
How do I go about contracts between me and seller/ me and buyer. Any money deposits, escrow, title company, and closing. I have a builder lined up, have seen a piece of land but haven't called the seller yet. I want to know how to proceeed with the seller first to get the property under contract, and then how to deal with the seller. I have no money to put in the deal !
Any advice will be appreciated.
Buying land: it makes a difference if it has power, water, sewer, road, etc. Price accordingly.