Real Estate Agent · Niskayuna, NY · Member since 2023 · 2 posts · 1 vote
Trying to learn the disposition process in the wholesale model in this complex state of New York. Do I need an attorney from the day I have someone under contract? Usually, in a typical real estate deal, an attorney is onboarded shortly after the person goes under contract.
Secondly, does it matter if the title company is based in Upstate vs. Downstate? Finally, are there any county-wide boundaries that we need to observe? Please share some friendly-title companies in the state, and I'll reach out to them personally.
I am a licensed agent; when wholesaling, do I give the seller an option to list with me if they are too adamant on the price near market value, or is that a conflict of interest?
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
3y
Hey @Raza Hussain Jafri - fellow realtor, investor, and new wholesaler here.
I've attended a couple of wholesaling events here and can confirm that it would be very helpful for you to have a wholesaler friendly attorney in the region you're targeting... most attorneys here either don't know what an assignment is, or aren't willing to do it. I also recommend having a title company based in the region that you're wholesaling.
One of my colleagues @Jean Tranquille recently did his first wholesale deal and I'm sure he can chime in here too.
Real Estate Agent · New York, NY · Member since 2019 · 55 posts · 28 votes
3y
Hi @Raza Hussain Jafri I have done assignments as well as traditional closings in NYC. Find an attorney that understands your goal and can tailor a specific contract for your needs; eventually, both the seller and buyer attorney will need to agree to the terms if you have aimed to add the 3rd buyer without going to double closing. Just closing cost + tax alone can eat much of the assignment fee, so calculate that into the offer.
Like @Mohammed Rahman said better to deal with a local attorney in the county you are working, but if you can't find one, it is still doable.
Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes
3y
@Raza Hussain Jafri You'll need to also discuss this with your broker, each broker is a little different when it comes to licensed agents wholesaling. Also since you are also a licensed agent you'll have to disclose that with your seller but depending on your broker, you may or may not still have to use the standard RE contract. If your broker allows you to wholesale, then as long as you tell the seller that you're an agent but you are also direct with end buyers, then you can still assign standard contracts to the end buyer or even double close. But it can be a very gray area or not accepted at all with some brokers because they don't like wholesaling, they might feel like they're missing out on their cut of the deal or they don't want issues down the road while others could care less if you operate as a wholesaler.