Involved In Real Estate · Philadelphia, PA · Member since 2012 · 46 posts · 8 votes
I have read some wholesalers don't show their end buyer the contract they have with the seller until closing. I have also heard that some wholesalers show their end buyer the contract before the buyer signs the assignment contract. I understand revealing your assignment fee, but why would a wholesaler reveal how much they are into a property for?
from my understanding you should get paid from both parties if I'm moving a house for the seller and bringing the house to the buyer, I'm bringing something to both parties so to make the impact financially less on both you get a bit for can it be done and how in a double closing or another method!!!
Do you have a license? That really is getting sideways in an agency relationship.
What you are selling is the contract to buy at that price at an agreed assignment fee. Hand me 5K and you can have this contract! I get to the contract after the property is shown and before collecting money. Full disclosure, upfront dealing, no hide and seek about it. :)
Depends on the relationship already established with the end buyer. If there is a good amount of trust there then its likely why someone would reveal all figures of the deal. If its an assignment of contract they are going to find out. However if you haven't gotten that far with trusting your end buyer with how much you are making yet feel free to double close.
Additionally, if the property was recently sold its likely to be discovered how much you are making with a bit of due diligence anyway. Zillow is good for posting when the property was last sold and for how much. County records will provide the same data. Some investors forget that and if the property needs rehab they should be mindful of their asking price if they want a quick cash sale. Even with immaculate comps being greedy can cost you....
from my understanding you should get paid from both parties if I'm moving a house for the seller and bringing the house to the buyer, I'm bringing something to both parties so to make the impact financially less on both you get a bit for can it be done and how in a double closing or another method!!!
from my understanding you should get paid from both parties if I'm moving a house for the seller and bringing the house to the buyer, I'm bringing something to both parties so to make the impact financially less on both you get a bit for can it be done and how in a double closing or another method!!!
Do you have a license? That really is getting sideways in an agency relationship.
What you are selling is the contract to buy at that price at an agreed assignment fee. Hand me 5K and you can have this contract! I get to the contract after the property is shown and before collecting money. Full disclosure, upfront dealing, no hide and seek about it. :)
Wouldn't you need the financing up front for a double close? how many double closings have you actually done? From my understanding, it is very uncommon.
Ever use a land trust? I do believe the cash buyer doesn't find out about the assignment fee when using that...
Wouldn't you need the financing up front for a double close? how many double closings have you actually done? From my understanding, it is very uncommon.
Ever use a land trust? I do believe the cash buyer doesn't find out about the assignment fee when using that...
I believe where you are you need to sell the contract due to your transfer taxes, taking an interest in a trust or any other agreement, you'll get taxed. Selling the option may slide by but I'd think you'd only get tagged to the value or your transaction and not to the value of the property selling an option as you would taking title.. @Steve Babiak
I thought I would chime in on This Wholesaling subject here.
1 I have done many double closings, it is very common in this industry. don't sweat it, just do it.
2 When I wholesale I do not Reveal my obligations to the seller on to my rehab buyer. And, they don't care about my profits as long as their numbers ad up. Also, Kudos to Mary By saying don't get greedy. And those same buyers will come running every time you put one up for sale. Remember, They are doing all the work they deserve to make more than you.
3 I don't use Land Trusts in a wholesale deal, there is no reason that is not what they're for. In my opinion.
I've been through all this and I can tell that people are over analyzing and I totally understand. Been there done that. Think, do you honestly care whether someone thinks you made too much or too little an a deal? I personally don't because I have been honest and ethical through the whole process. If it was good for them, they will be calling and waiting anxiously for your next deal to come.
Lets be honest and I'm not saying anything that you don't know already. If we are going grow in life, business or relationships, we cannot do it without leaving our comfort zone. It's just a fact of life.
Get up, get stated and take action. Action is the key to gates of growth.
Wouldn't you need the financing up front for a double close? how many double closings have you actually done? From my understanding, it is very uncommon.
Ever use a land trust? I do believe the cash buyer doesn't find out about the assignment fee when using that...
I believe you can use a split hud1, which shows only the positive financials for the buyer and the seller respectively.
Has anyone ever disclosed closing costs to an end buyer who has not signed your assignment contract, or put down a deposit with the title company? I make the buyer pay all closing costs, and I had a buyer tell me they wouldn't sign my assignment contract unless they could put a "review of hud1 clause" on it.