When wholesaling what are some good ways to maintain anonymity while keeping your deal from falling apart? Any suggestions on double closing in escrow, or the use of trusts? Are buyers generally familiar and comfortable with interacting with trusts during their acquisitions?
I know I commented on another thread as well. I’ve been running a wholesale business for years now, still fix and flip and buying rentals plus holding notes. Not about to steer you wrong. When it comes to trust, generally neither buyer/seller cares, except for their $$ or the asset.
If you don’t want to do an assignment, then you’ll need to Double Close. If they won’t allow for pass through funding, you might be required to use Transactional Funding for that closing.
If that was the route you had to take, I offer Transactional Funding. Wholesalers Transactional Funding
@Jesse LeBlanc Thanks Jesse. I was leaning towards double closing, just seems much simpler. Thanks for the insight on seller/buyer attitudes towards trusts. That was a big question and concern of mine as a new wholesaler.
@Quincy Baker all good. Also if you’re transparent then your fee shouldn’t matter.
Also if you have your buyers purchase price ahead of time it makes wholesaling easier.
But double close is always an option if you aren’t comfortable with an assignment
You’re not going to be able to remain anonymous to buyers or sellers....and why would you feel the need?
@Wayne Brooks I understand sometimes buyers can become uncomfortable with fees particularly if they exceed certain amounts and likewise sellers can feel uncomfortable with a fee being earned on their property. I’m new to this process and trying to understand the business culture.
@Quincy Baker When you do the assignment of contract; then either buyer or seller or both would know your profit margin; through contracts and settlement statements at closing.
The objective of double closing by using transactional funding. In this case, the buyer or seller will not know the profit you make.
FYI only: When the margin is small, say under $5,000 or under 3% of property value; then contract assignment generally is not a problem. When things get bigger; double closings are a better alternative.
Message me for any further assistance.
Thank you for your feedback. Great rules of thumb.
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