I was recently told that you can wholesale (double close) off the MLS since the seller is paying the initial realtor fees. I have a few questions though:
1) If I double close does that mean I have to pay the realtor fees (5%-6%) at the second closing?
2) Do I have to use earnest money, or can I make offers on the MLS without earnest money? (I understand it might not be the norm, but is it technically feasible)
3) Can I start advertising the property after I get the offer sent or do I have to wait till it's accepted? (My thinking is if I find a potential buyer before the offer is accepted then perhaps I would feel more comfortable in the negotiation process, kind of knowing my financial "limit" based on what kind of response I'm getting from buyers.)
Just curious and trying to learn the mechanics/logistics.
1) I don't do them but I believe in the second half of the double close, that's between you and your buyer and no RE agent or commission is involved. I don't care for double closings. You can just assign your contract to the ultimate buyer and the title company can pay your fee on the HUD-1 at closing.
2) If you're making an offer for a listed property, you will make it with the state contract and will be expected to provide some earnest money. Are you using a RE agent on your side or are you making your offer directly to the listing agent/broker?
3) I don't call it "advertising", but I have cash buyers that I trust and I routinely discuss deals with them (not all but the ones I am close to) to get an idea of what they will pay. Do that all the time. I almost always have the cash buyer ready to rock and roll.
P.S. Send me a colleague request with your email address and I'll send you my 3-video "Wholesale Accelerator" course for free. It will answer a BUNCH of your questions! =)