Just a quick personal question for you all. Who pays the closing costs? Do you as a wholesaler pay them, or have the buyer pay them? I have downloaded a few contracts for wholesaling off this site and some have a section saying the buyer pays the closing costs but I feel as if that my steer them away from buying the property if they find out they have to pay the closing costs. I also don't expect the seller to pay closing costs nor will I have them. Is this just a preference for most people? I'm just curious to see what everyone has to say or does about the closing costs.
The payment of all closing costs should be addressed in the contract. If the buyer is to pay the closing costs and you assign the contract, the assignee will be responsible for paying them. If the buyer is to pay the closing costs and you double close, you will be responsible for paying them. There is no preference - this is a cost (like any other) which the investor will need to add in to the basis of the property. Not paying the costs makes the deal more attractive, paying them makes it less attractive. It's all about the numbers.
it's best to have buyer pay so seller can be clear on exactly how much they are getting up front
When stating that the buyer will pay the closing costs. Be clear to state 'normal/customary closing costs'. Otherwise something unexpected could arise at closing and then it could be trouble trouble.
Thank you guys! I appreciate it.