I'm trying to understand the wholesaling process after the seller agrees to an amount. Do you do two closings: one for you and the seller and the other with you and the buyer? Do you go to one closing with you, the seller, and the buyer? Do you pay closing costs or does the buyer pay the closing costs? I've been reading through the wholesaling bible, but am still looking for some clarity. Thanks!
2 options as you mention 1- You can “double close”: Seller to you at 10am, then You to buyer at 11am. This is also good because the Buyer doesn’t see your Fee / original Seller’s price. Or 2- just one closing but the Buyer will see the Seller’s price. Many beginners don’t like this since they’re worried the Buyer will start talking direct to the seller, or that the Title Co will say something stupid out loud. I’d go with the double close on your first few especially until you know the Buyer won’t screw you or try to cause a shakeup.
Thanks for the info. So my follow up question to that is do I need to be paying full cash amount at the time of closing in order to acquire the title? Or is there some sort of workaround where I don’t actually use any cash until the buyer pays?
You need to get to know a good local title company. If you're doing a double closing, you might be able to do a "dry closing" where the funds from the second closing are used to fund the first closing. If they can't do this, then either (1) find another title company, or (2) find a hard money lender for a transactional loan.
The single closing is the simplest. Don't worry about the buyer and seller going direct because the buyer would be burning a bridge for future deals, and the seller would be in violation of your contract with them.