Is wholesaling really legit?

12 Replies

The reason I ask this question is because I've called several title companies and asked if they do assignments, double or back to back closings and they all responded as if it was illegal or something.

My question: Is their a new way wholesalers are closing their deals?

Or is it that I just haven't talked to the right title company yet?

And if a wholesaler in the South Florida market could point me in the right direction it would be greatly appreciated.

I'm not from Florida but it sounds like you're calling investor unfriendly title companies, I would keep calling around.

I'm pretty sure someone with Florida keyword alerts will be here to save the day shortly.

Wholesaling is legit, most wholesalers are not.  I can understand why a title company concerned with its reputation would rather just avoid the whole thing.

Assigning contracts is legal. It can be problematic doing a double closing if the seller wishes to use the end buyer's funds towards the first purchase. Transactional funding can solve that issue but it will add an expense (probably ~2%).

Yes wholesaling is legitimate. Essentially what you are doing is assigning your contract rights over to a 3rd party. I would highly suggest you ask for referrals from your local Real estate investors club for investor friendly title companies, lawyers, agents etc. That way you can build a team and wont be scrambling at the last minute to find a business that will accommodate your needs as an investor

I heard Independent Title of Ft Lauderdale is investor friendly and can do them.

@Dan S.  Thanks I'll stop by their office and talk to them.

Have you done business with them?

You can also join a meetup group on real estate investors. I joined 2 groups over here and they have helped me out as well as BP. 

@Ricardo Salter I have not but I am pretty sure others have. I have seen their name come up a few times in the forum.

Make sure you find a wholesale investor title company! They are out there!

NO!! Absolutely Not! 

Here's what I tell myself every time I see this question! I want to scream out "No!! It's a HORRIBLE way to make a living, its totally illegal and it will NEVER lead you to a life of your dreams..."

But then I would go to H E double Hockey Sticks for lying.

Go get your dreams!

Have a Powerful Sales Day! 

Originally posted by @Richard C. :

Wholesaling is legit, most wholesalers are not.  I can understand why a title company concerned with its reputation would rather just avoid the whole thing.

Most wholesalers are not legit?  Ouch.  :)

Title and escrow agents close purchases and refis involving assignments every single day. Many for large, institutional buyers and lenders.  Basic contract law provides for assignments.  This calling and asking if title or escrow companies "do" assignments is the best way to raise a red flag as a newbie.  You do the assignment.  You assign what you own.  You don't ask permission.

(In before the flaming begins) 

This has been debated to death on here. The assignment of contract as the above poster points out is perfectly legal. It comes down to contract law. 

The place people are getting themselves "into trouble" is with the marketing of the property prior to closing. 

Every title company I have talked to does double closings. They call them "flip" closings up here. My Title Co loves them because they get paid twice. 

As to avoid any issues you could always close on the property and then list it on the MLS the next day/market it to your hearts content.

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