Help Navigating with Wholesalers

4 Replies

Hi all,

Thank you for reading.

I'm looking at a deal in KC that is on a house being sold by a wholesaler. In the past, I have always worked with the actual owners and their seller-agents. This is something new.

The wholesaler wants to meet in the house where he will give me the "rights" to the house and I will give him cash. Now, alarms and bells are going off as I type that--it seems very dangerous.

I certainly want to get a title company involved to ensure I get title free and clear.  

How do I protect myself against a scam? Are there any specific issues of being a wholesaler where I should accommodate?

Don't I need to get title from the original owner?

Any advice would be welcome. 

Josh 

@Josh McNicoll  if you have title work pulled and he assign you the contract it should be all good. Do be careful, have title work pulled first, or if he is worth a darn he should have it already.

No legal advice

@Josh McNicoll  You are right to be concerned if the wholesaler is asking you to pay him cash. 

Typically, the wholesaler should already have a signed purchase contract with the seller.  He can then "assign" his rights to buy the property (as provided by the purchase contract he has with the seller) to you.  However, any money that you pay in the form of a deposit or assignment fee should be paid to/through a title company handling the sale. 

Thanks, Jeremy. 

Thanks for the input. Hopefully, he will have title worked pulled as you say. I really do appreciate the fast response--it helps.

Best,

Josh

@Kyle J.

Thanks, Kyle. That is exactly what I needed to hear. I will make sure a title company is involved. I have a few more questions, but I think I can direct those at the title company. This was a great start to my research! Thanks for your time.

Best,

Josh

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