i found a property that fits my budget and i called the "owner". the guy who answer the phone was the wholesaler and we started talking...
i never liked deals with a wholesaler because i never took the time to understand them thoroughly...he said he has the option to assign the deal for the next 60 days.
i found out the property has back taxes. i told the wholesaler to find out what the real owner is willing to pocket and walk on this deal...
the owner is willing to take 12k. the wholesaler wants 2500. the back taxes are 6k. closing and title would cost about 2k....for a grand total of $22,500.
im ok with that figure. i just want to look for in the transaction. i want to make sure the property gets deeded to me and doesnt pass through the wholesaler in any capacity? they dont actually own the property for any time, right?? they just own the right to sell...
i am going through a title company for the close but how does that closing work...the wholesaler, owner, myself all sit at the closing table...i pay the closing company...then i pay the wholesale...then i pay the owner...then i get the keys???
Hey @Joe Boggin
Make sure the title company you will be using is intimately familiar with assignments and double closes. If not...find one that is ASAP.
If the wholesaler is worth his salt he/she will tell you how the process works.
If the title company does what you need for them to do then once you sign the assignment agreement you will hear from the title company instructing you to either wire or bring them a check for the $22,500.
They will give you a date for when the closing will be barring any other issues. You and the seller will show up for the closing. The wholesaler doesn't have to be there.
You and the seller will sign each respective side of the HUD and the seller will get a check for $20,500, the wholesaler will get a check for $2000 and you will get the keys.
Pretty simple process.
Hope this helps and good luck on the deal.
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