Professional · Simi Valley, CA · Member since 2015 · 20 posts · 1 vote
When wholesaling a property who pays for the title company if you go to a title company as soon as you get your purchase agreement signed? Do you have to pay the title company anything upfront? Or does the person who you assigned it over to pay for everything? And what happens if you are unable to close? Thanks so much
Wholesaler · saginaw, MI · Member since 2015 · 74 posts · 15 votes
11y
If Im not mistaken you pay the title company fees because the buyer usually pays the closing costs. When you Assign your contract to an end buyer you always get a deposit of at least $500-$1000 that is non refundable. That deposit is then put in escrow wich is like the bank account the company has and at the end when you get payed by the title company you pay the fees. This is from what my understanding. I have not yet done any deals so I'm not 100% sure. Just going based on what I've learned.
When wholesaling a property who pays for the title company if you go to a title company as soon as you get your purchase agreement signed? Do you have to pay the title company anything upfront? Or does the person who you assigned it over to pay for everything? And what happens if you are unable to close? Thanks so much
Who pays the closing costs is negotiable and is determined between you and the seller before you both sign the sale contract. If you wholesale the property, the end buyer is basically just stepping in for you on the original contract so it won't change. If the original contract says the buyer will pay closing costs (which include the title company charges) then just make sure to include those costs in the the offer your making to the end buyer.