Investor · Fairfax, VA · Member since 2017 · 57 posts · 22 votes
This has been asked a few times on this forum before, but I want to get fresh knowledge or experience: When you wholesale in PA, do you have to go through a double close, thus deal with a double transfer tax? This is significant because there is a 2% transfer tax in PA.
The best suggestion I've seen so far is to record an option with the seller, then have your end buyer pay you a "release fee" for you to unencumber the property. See the comment here https://www.biggerpockets.com/forums/93/topics/403...
Investor · Dallas TX, United States · Member since 2014 · 1k+ posts · 1k+ votes
7y
I like to use the release fee or get paid as a consultant by the buyer. There are a number of ways to do this. They key is to ask your real estate attorney how they want to do it. They are the ones who will be drawing up the paperwork to keep you legal.
Not to scare you but in Pittsburgh, and I believe Philly, we now have a 5% transfer tax. You really don't want to double close if you don't have too.
Investor · Fairfax, VA · Member since 2017 · 57 posts · 22 votes
7y
@Josh CaldwellThanks Josh. My current attorney leans toward having me pay the double closing. He is great for everything I've done so far, but perhaps I should seek out other attorneys for closing.
5% transfer tax! That's insane! I am Harrisburg metro area, as far as I know it's 2%, but I'll double check.
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
7y
Paul, the 2% is shared between seller and buyer ( 1% each) in total it would be 2% for you with a double close. I have not heard of the other ways around it but something I will check into, I do not wholesale but all my properties are in PA
Investor · Dallas TX, United States · Member since 2014 · 1k+ posts · 1k+ votes
7y
@Paul T. You might want to interview a few RE lawyers. Seek out the lawyers who already work with wholesalers in your area. Find your local REIA or meetup groups and ask around.