Wholesale . Does End buyers offer include closing cost?

9 Replies

"Ello" I'm new to wholsaling and i have a question about the end buyers offer. I was wondering if the offer that you make to the end buyer, is closing fees added into the offer or do you send a offer and let them know about the extra closing fees?

110,000 seller offer

125,000 end buyer offer (does the 15,000 cover closing or does this go into your pocker?)

Not sure if im asking the question correctly.

@Krishonda Johnson It really depends on the situation and the deal and the costs associated with the deal. If its pretty straight forward, I have my buyer pay my assignment fee and the closing costs. If there is some complicated issue, unpaid property taxes, unpaid liens etc I take that out of my proceeds. It really will depend on the deal, the situation and how motivated your buyer is.

Originally posted by @Lydia T. :

@Krishonda Johnson It really depends on the situation and the deal and the costs associated with the deal. If its pretty straight forward, I have my buyer pay my assignment fee and the closing costs. If there is some complicated issue, unpaid property taxes, unpaid liens etc I take that out of my proceeds. It really will depend on the deal, the situation and how motivated your buyer is.

 Ok. Thank u so much. Another quick question? How do i pay taxes on my assignment fee so that i dont have to owe the irs?

@Krishonda Johnson , I have a good friend that does a lot of wholesaling in my area. He pays closing cost out of the fee.

He likes to do this because it makes everyone agree to use the title company of his choosing. He has a couple of title companies that he works with a lot and are well versed in dealing with these deals. 

He claims the lost money from paying the closing costs is worth it because it allows him to close quick and focus on the next deal or another area of business, not getting held up with a title company that doesn't know how to handle these deals.

Originally posted by @Grant Rothenburger :

@Krishonda Johnson, I have a good friend that does a lot of wholesaling in my area. He pays closing cost out of the fee.

He likes to do this because it makes everyone agree to use the title company of his choosing. He has a couple of title companies that he works with a lot and are well versed in dealing with these deals. 

He claims the lost money from paying the closing costs is worth it because it allows him to close quick and focus on the next deal or another area of business, not getting held up with a title company that doesn't know how to handle these deals.

 Ok thanks

@Krishonda Johnson Once you find a good title company use them for all your deals. I wouldnt suggest paying the closing costs out of your fee—unless you are adding those costs to your fee. You shouldnt lose money if you are providing good deals to investors that want them. Closing costs here in my area average around $2500-$3000. Thats a lot to take out of a wholesale fee. Just my 2 cents

Originally posted by @Lydia T. :

@Krishonda Johnson Once you find a good title company use them for all your deals. I wouldnt suggest paying the closing costs out of your fee—unless you are adding those costs to your fee. You shouldnt lose money if you are providing good deals to investors that want them. Closing costs here in my area average around $2500-$3000. Thats a lot to take out of a wholesale fee. Just my 2 cents

 Ok. Of all the research and videos i watched i thought I was ready to start sending letters out but ran into a property that a attorney owned and freaked out. How do i approach people with a letter not knowing how much they owe in morgage? Or even find out there arv to advertise?

@Krishonda Johnson You wont know what they owe on their mortgage until you talk to them. Step one is find someone who actually wants to sell. Step two is to find out the important info and analyze the deal. Start with step one. Then move on to step two.

Originally posted by @Lydia T. :

@Krishonda Johnson You wont know what they owe on their mortgage until you talk to them. Step one is find someone who actually wants to sell. Step two is to find out the important info and analyze the deal. Start with step one. Then move on to step two.

 Ok will do. Thank u again