Wholesaling in Alaska?

Question

Tim Illguth · Answer

@Jose Flores:Thanks so Much for the advice. Where am I supposed to get these contracts from? Do I have to make them? Should I pay a local lawyer to write them up? My Mentor said assignment was a good Idea too. I checked with my local title company to make sure they do them. I haven't checked with them if they do a simultaneous closings though I will look that up. I didn't know about the extra costs for the simultaneous closing either. That would have been a rude awakening. Have you seen it be a negative situation, when the buyer sees that I made money on the deal?

Jose Flores · Answer

Hey @Tim Illguth For a wholesaler the contract is an extreme important instrument to structure a wholesale deal. It is where you control the deposit you put up; communicates your “out clauses” to protect yourself in the evident you can’t find an end buyer. It is where you communicate your need for access to the property. This is just to name a few. The point I want to drill home here is that it is all about control.  My rule of thumb is that if I am making 5k or less on the deal I will use an assignment. If I am making over 5k I will use a simultaneous closing. Here are the benefits and drawbacks of each wholesale deal closing. If you are closing using an assignment the benefit is that there are no closing costs. The drawback is that the buyer knows exactly what you paid for the property and the seller know how much you are selling the property for. This may be a problem if the seller or buyer thinks you are making too much money on the deal. If you are closing using a simultaneous closing the benefit is the privacy that seller does not know what you are selling the house for and the buyer does not know what you bought the house for. The drawback of a simultaneous closing is that you will have to pay closing costs when you buy the house and closing costs when you sell the property.  Hope this helps.