What is an a-b in wholesaling?

Question

I am in the middle of buying my first investment property from a wholesaler. I have purchased properties before but never through a wholesaler. They sent me a message saying that the assignment contract was going to be sent over and once I sign he will be sending over the a-b. Does anyone know what that is or what it means?

Any feedback is appreciated.

Thank You

Any feedback is appreciated.

Thank You

Nick C. · Answer

A-B contract is the contract between the seller and the wholesaler. That’s the A-B transaction, in this case the contract you are purchasing via assignment fee. Sounds like you’re not going to be seeing it before buying it, so hopefully it’s a good one. You are the B-C transaction, from the wholesaler to you.
A= seller

B= wholesaler

C= buyer

Will Barnard · Answer

This is the correct answer and beware of doing the deal without seeing the A-B contract FIRST. Never pay the wholesaler direct, only through escrow and never accept any terms stating you have to put up non refundable EMD before you ever see the A-B purchase and sales agreement. That is going in to the transaction blind. Would you cross the road on foot blind into oncoming traffic?

Caito Coloma · Answer

Thank you @Will Barnard, he ended up sending the A-B prior to signing the assignment. I also gave the money directly to the escrow company.

Thanks for the help!

Caito Coloma · Answer

Hey @Bryant Brislin thanks I just asked and it is what @Nick C. mentioned, it the contract between the seller and the wholesaler. I appreciate the feedback guys. Thanks Again

Bryant Brislin · Answer

You may have misheard him, he may have said "EMD", meaning escrow will give you the wire instructions of where to send the deposit.  If anything, just ask him what he meant by that; don't be shy.

What is an a-b in wholesaling?

Most Popular Reply