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Tatiana Yurshevich
  • New to Real Estate
  • Seattle
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Need an advice on purchasing SFH from wholesaler

Tatiana Yurshevich
  • New to Real Estate
  • Seattle
Posted Mar 23 2023, 14:16

Hello All!

I'm a new investor based in Seattle and I got a good deal on SFH from a wholesaler from North Carolina.

Can you please tell me how the purchasing process will look like? Do I need an attorney to represent me (I'm out of state)?

Who is going to check the title (me or the lender)?

Any information is much appreciated since I really want to make it work.

Thanks in advance!

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Brie Groves
  • Realtor
  • Seattle, WA
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Brie Groves
  • Realtor
  • Seattle, WA
Replied Mar 23 2023, 14:51

Hi Tatiana,

You should definitely have someone representing you if you haven't been through the process before. Whether it's an agent or lawyer, you want to make sure everything is on the up and up! Have you signed anything yet? There are a lot of issues that can come up in a transaction like this. Feel free to contact me if you want to talk more specifics! Happy to help!

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Eric Yu
  • Real Estate Agent
  • Seattle, WA
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Eric Yu
  • Real Estate Agent
  • Seattle, WA
Replied Mar 23 2023, 17:20
Quote from @Tatiana Yurshevich:

Hello All!

I'm a new investor based in Seattle and I got a good deal on SFH from a wholesaler from North Carolina.

Can you please tell me how the purchasing process will look like? Do I need an attorney to represent me (I'm out of state)?

Who is going to check the title (me or the lender)?

Any information is much appreciated since I really want to make it work.

Thanks in advance!


Nice - welcome to the investing journey! 

The purchasing process will be similar to the standard buy process with an agent, but some forms may be different. It would be worthwhile joining some local real estate investor groups in North Carolina to get their insights too (every state has slight differences in the purchase process). 

Are you doing a Hard Money Loan? Or conventionally financing this? At the end of the day, the title accuracies are a liability to you, so you should always review those in depth. The title company will pull the reports for you to review. Do you have any other specific questions here?

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Don-Carlos Moniz
  • Real Estate Agent
  • Fayetteville, NC
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Don-Carlos Moniz
  • Real Estate Agent
  • Fayetteville, NC
Replied Mar 23 2023, 20:18

@Tatiana Yurshevich,

Welcome to the forum. North Carolina is an attorney state, so you will have to retain the services of a lawyer to close.

I would encourage you to use a local (to your deal) attorney that specializes in real estate. Most of the attorneys have one (or more) title companies they routinely work with, but you don't have to use one of their preferred title companies.

I can recommend a couple of attorneys in the Fayetteville and Raleigh area. When looking for an attorney, make sure you ask if they will work a wholesale deal. Like a lot of states, wholesaling in NC is getting a lot of attention. It's not illegal, but some attorneys won't handle wholesale closings.

If you have any more questions, don't hesitate to ask.

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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied Mar 24 2023, 06:27

When you work with a wholesaler you are unrepresented, no matter how much they seem to try and help you it is every man for themselves. If you do not fully understand the deal you should not go through a wholesaler. 

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Tatiana Yurshevich
  • New to Real Estate
  • Seattle
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Tatiana Yurshevich
  • New to Real Estate
  • Seattle
Replied Mar 24 2023, 09:59
Quote from @Don-Carlos Moniz:

@Tatiana Yurshevich,

Welcome to the forum. North Carolina is an attorney state, so you will have to retain the services of a lawyer to close.

I would encourage you to use a local (to your deal) attorney that specializes in real estate. Most of the attorneys have one (or more) title companies they routinely work with, but you don't have to use one of their preferred title companies.

I can recommend a couple of attorneys in the Fayetteville and Raleigh area. When looking for an attorney, make sure you ask if they will work a wholesale deal. Like a lot of states, wholesaling in NC is getting a lot of attention. It's not illegal, but some attorneys won't handle wholesale closings.

If you have any more questions, don't hesitate to ask.


 Don-Carlos,

Thank you for your advice! I would appreciate if you could recommend attorney in NC.

Thanks!

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Tatiana Yurshevich
  • New to Real Estate
  • Seattle
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Tatiana Yurshevich
  • New to Real Estate
  • Seattle
Replied Mar 24 2023, 10:00
Quote from @Brie Groves:

Hi Tatiana,

You should definitely have someone representing you if you haven't been through the process before. Whether it's an agent or lawyer, you want to make sure everything is on the up and up! Have you signed anything yet? There are a lot of issues that can come up in a transaction like this. Feel free to contact me if you want to talk more specifics! Happy to help!

Hi Brie,

Thank you for your advice!

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Tatiana Yurshevich
  • New to Real Estate
  • Seattle
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Tatiana Yurshevich
  • New to Real Estate
  • Seattle
Replied Mar 24 2023, 10:02
Quote from @Eliott Elias:

When you work with a wholesaler you are unrepresented, no matter how much they seem to try and help you it is every man for themselves. If you do not fully understand the deal you should not go through a wholesaler. 


 Hi Eliott,

Thank you for your advice! How can I get more experience working with wholesalers? Can you recommend any books or other sources? Thanks!

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Tatiana Yurshevich
  • New to Real Estate
  • Seattle
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Tatiana Yurshevich
  • New to Real Estate
  • Seattle
Replied Mar 24 2023, 10:07
Quote from @Eric Yu:
Quote from @Tatiana Yurshevich:

Hello All!

I'm a new investor based in Seattle and I got a good deal on SFH from a wholesaler from North Carolina.

Can you please tell me how the purchasing process will look like? Do I need an attorney to represent me (I'm out of state)?

Who is going to check the title (me or the lender)?

Any information is much appreciated since I really want to make it work.

Thanks in advance!


Nice - welcome to the investing journey! 

The purchasing process will be similar to the standard buy process with an agent, but some forms may be different. It would be worthwhile joining some local real estate investor groups in North Carolina to get their insights too (every state has slight differences in the purchase process). 

Are you doing a Hard Money Loan? Or conventionally financing this? At the end of the day, the title accuracies are a liability to you, so you should always review those in depth. The title company will pull the reports for you to review. Do you have any other specific questions here?


 Hi Eric,

Thank you for your advice! I was assuming that working with a wholesaler you must be able to close fast so they consider cash buyers or hard money. Can you recommend me any books or other sources of information so I can get more knowledge and experience? 

Thanks!

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Kathie Russell
Pro Member
  • Professional
  • Raleigh, NC
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Kathie Russell
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  • Professional
  • Raleigh, NC
Replied Mar 25 2023, 13:14
What area is your property in?  i can recommend investor and wholesale friendly attorneys in the Triangle or Charlotte area

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Pat Lulewicz
  • Realtor
  • Raleigh NC and Greensboro, NC
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Pat Lulewicz
  • Realtor
  • Raleigh NC and Greensboro, NC
Replied Mar 26 2023, 08:38

Generally speaking, wholesalers will include the closing attorney in the contract (both A-B contract between seller-wholesaler and B-C contract between the wholesaler and you). If the closing attorney isn't included, they may not have the experience necessary to know an attorney in NC who does assignment contracts or double closings. These transactions are starting to get more scrutiny from the state. Although you can use a separate attorney, you're just going to pay another $800-$1000 for what should be the same answer regarding title.

If there is an attorney noted on the purchase contract and/or assignment contract, the wholesaler should have either already opened title process or will do it now that they have an executed assignment contract with you. From here, attorney will advise if there are any issues with title. Wholesaler should put you on email chain or some other communication with attorney so y'all can discuss title, ALTA, closing date/time and wiring instructions. In addition, if you are using a lender, you need to get lender in contact with attorney to get title insurance policy. From there its awaiting clear title, wiring funds, and getting to closing table.

BTW, make sure you get the original purchase contract itself as well. Some wholesalers won't share until you sign the assignment contract, which is fine, but just make sure you get a copy in the process.

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Dennis Nguyen
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  • Real Estate Agent
  • Seattle, WA
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Dennis Nguyen
Pro Member
  • Real Estate Agent
  • Seattle, WA
Replied Mar 27 2023, 15:48

I would connect with an agent or a lawyer over in North Carolina! Laws vary state by state so you definitely want to be protected.

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Kathie Russell
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  • Raleigh, NC
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Kathie Russell
Pro Member
  • Professional
  • Raleigh, NC
Replied Mar 27 2023, 18:43
you should definitely get your own representation and not rely on the wholesaler's attorney.  Some wholesalers make you pay for their side of the closing as well  Read the contract carefully.  There are some unscrupulous wholesalers around, and there are some good ones.  If you let me know the area i can recommend an attorney.  I am a recently retired attorney and specialized my whole career in investors and creative deals.
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Aaron Bauer
  • Real Estate Broker
  • Charlotte, NC
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Aaron Bauer
  • Real Estate Broker
  • Charlotte, NC
Replied Mar 29 2023, 07:12

Sperry Law Firm and 24 Hour Closing are two solid closing attorneys in the Charlotte area. Both are very familiar with wholesale deals.