Hello BP family,
To all my expert wholesaler friends, I have a question regarding the closing costs when wholesaling. Who usually pays the closing costs when you are wholesaling properties (the wholesaler, seller or the buyer)?
How do you factor the closing costs when making an offer? I've done quite a bit of research and can't seem to find consistent information. Any advice you can provide would be greatly appreciated.
I want the other party to pay closing costs whether I am a buyer or seller. As a wholesaler it doesn't matter because it is not you. It will either be the seller or the end buyer, based on what the contract says.
The contract will say who pays closing costs. That is a negotiable point but there will be norms in your area. In my area it is common to split some costs like transfer and recording costs but other costs are on the buyer. Most auction /investor deal terms are all closing costs are on the buyer.
So you as the wholesaler decides who pays when you negotiate the original deal. When you assign you contract to and end buyer, you are essentially selling your contract. You are selling a contract not a house! The end buyer is responsible for meeting the buyers terms under that contract.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
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