Paid at Closing vs. Paid at Assignment

[Steven Leigh]

When you wholesale contracts, do you generally take all contracts to closing and get paid at closing, or do you have the buyer pay your fee before assigning them the contract. I've heard both options touted recently.

I suppose the benefit of the former is that the buyer doesn't know what your actual fee is, but is just negotiating with you on their purchase price (which includes your fee). The benefit of the latter is that you don't need to be too involved in the closing, and here in Ohio where it's getting legally murky about whether wholesaling is legal, I think some of the Ohio wholesalers are doing it so that it's very clear they are selling a contract and not a house.

What's your opinion? Which do you do, and why?

Thanks everyone.

[Chris Boyd]

Sure. We always tell our sellers that one of three things will happen: 1. We will buy property, make any improvements, and sell it to a nice family. 2. We will buy property and rent it out. 3. Or we will pass it along to one of our fellow investors.

This way, seller knows our position at all times. Communicate with seller throughout the process as well. It makes everything easier.