Since joining BiggerPockets I have done 2 wholesale deals and potentialy working on the third right now. My situation is such that a another wholesaler would like to bring me into a deal because they are not familar with the mechanics of a wholesale deal.
Up to this point (with permission from owner) we have a negotiated a short sale with a bank on a pre-foreclosure. The other wholesalers not in a position to execute purchase agreement as they don’t have any intention of buying the property. I was a bit conflicted about this and advise the other wholesaler to be upfront with the end buyer and wanted full disclosure and transparency in the deal as I have read many posts indicating the lack of ethics used by wholesalers who have no intention of buying a property should the end buyer’s financing fall through.
We have come up with...the end buyer plans to execute purchase agreement with the bank and place a wholesale or consulting fee in the purchase agreement which will subsequently end up on HUD statement at closing.
Until now I have only done an assignment or double clise because I had the intention of purchasing the property as one of my exit strategies. I have never done or completed this type of structure any advice apppreciated?
I have not done my first wholesale deal yet so take what I say with a grain of salt.
In this video the content creator explains contingencies that allow you to back out
I am not 100% sure but you may want to ask a title company what to do. I am not 100% clear what exactly these companies do but they may be able to advise you.
@Mike O. I'm not sure what your question is, but your title company should be able to help. If not go to a local REIA and ask around for some advice.
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