closing an assignment

[Matt Beans]

After getting a property under agreement with a Purchase agreement, what do i do? i hear get the title checked by a mortgage company? how do i get the title? After finding a buyer do i give them the Purchase and sale agreement by hand, email, fax, do they go to my mortgage broker and sign it there? and doesn't the sell have to sign the same agreement as the buyer? how do guys do this without ever seeing the seller, or buyer, or even going to the mortgage company's building? This is the only thing stopping me from doing wholesaling.

[Sharon Vornholt]

Matt -

As soon as I have a contract I send it over to my closing attorney. They know me so they know that I will be wholesaling the deal. But what you would do is to be sure you have an investor friendly attorney or title company first of all. Then tell them that you will be assigning the contract or doing a double closing, so you will send over the second contract when you have it. They will just go ahead an run the title and then wait for you to get back with them.

You can't use this process for someone that is getting a traditional mortgage. Regular mortgage companies will not get involved with wholesaling.

You need cash buyers. In other words, your buyer needs to be an investor with access to cash. That could be that they have a line of credit with an investor friendly bank, a home equity line of credit, actual cash or any number of other ways they can access cash to close the deal.

You do all the paperwork; not a mortgage broker. There won't be a traditional mortgage.

You look at the house, make an offer to the seller, write the contract and then have the seller sign it. You can do this in person, email it to them, or fax it to them. Your deal is with the seller.

You have a second deal with your end buyer that is the same process. You will end up with two contracts or one contract that you then write an addendum to and "assign" it to the new buyer. I would personally double close the deal. My seller rarely knows my intentions with the property.

Listen to the podcast interview here on BP that I did with @Brandon Turner and @Josh Dorkin on wholesaling. You also need to read all the posts on how to wholesale a house. I think you are getting a little ahead of yourself and need to get some basic knowledge before doing your first deal.

Sharon