Hello BP, I have a question about the various fees involved to complete a wholesale deal. How many different fees are there, and how would I be able to estimate the total amount needed to close a deal?
If you are assigning the contract there would be no fees. If you are double closing you might expect around $750 on average.
Call your title company and ask. They are the ones who will approve the HUD that lists all of the fees.
Ibrahim Hughes, STEP Buys Houses LLC | http://www.StepBuysHouses.org
@CurtDavis If dbl. closing there would also be costs associated with transactional funding. I am curious about how a wholesaler with out knowing their exit strategy upfront can accurately set their fee. Double close and assignment bear two different costs- or do wholesalers always assume dbl. close to be safe?
I try to avoid a double close at all costs (no pun intended). I have found a couple investor friendly title companies where they hold the funds from one transaction to pay for the other. They will do this as long as the close happens the same day.
Ex: buy close happens at 10am and those funds are put in an escrow, then the sell close happens at 2pm, and the funds come out of escrow to complete the close. This way there are no double close fees but not all title companies will do this.
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