All Forum Posts by: Jesse LeBlanc

Sounds like everyone has cleared up the process and you should be SOLID from here!!  Congrats on your first deal.    As you grow your business, do your best to have your buyer first and lined up for a smooth and easy Assignment of Contract.  Most wholesalers just lock up deals, then try to find buyers and it can be a LOT of work and very stressful.  

So by having your buyer first, being transparent and having great communication should help your future closings go VERY smooth for you. :)  @Alicia England

Congrats on finding that deal and getting it closed. I'm sure you made you seller VERY happy!  :)

Good Evening @Keith Lanier  
I ran a wholesale company for years, then later added Transactional Lending to my business model.

If you already have your buyer and you decide or are required to use Transactional Funding, then there shouldn't be any negatives except for the extra costs you would have for the lending.  If you can assign it vs double close, you could get around double closing.

But there are states and or some closing companies that won't allow pass through funding or assignments and Transactional Funding (unless you had your own cash for the 1st transaction).

But again, if you have your solid BC buyer, then work with your closing company and make sure they know you are closing BOTH transactions on the same day at the same closing company.  As long as your closing company is familiar with double closings, then it should be really smooth!

We talked on the phone, but didn't want this to appear as if I didn't reply. :)  

Clearly state that in your contract the seller signs which can give you permission to list.  

DONE.   Be transparent, be honest.  It can be one of your exit strategies if you aren't finding your buyer first (which you should) but if you're transparent with the seller and it's in your contract then you're good.  

It doesn't however mean that an agent or broker has to allow it, but many will.  

I have a TON of different contracts, assignments etc. Majority can be used anywhere, but if someone has one specific for VA, then might as well use that one @Daniel Paloscio might be able to snag for you @Jose Thompson

@Jose Thompson do your best to assign the contract.  Be transparent with all parties to keep it smooth.  if for some reason you get into a situation that a contract isn't assignable, you can always draft an amendment stating the contract is assignable and if both parties sign, you're all set!

Next option if you're still assigning but don't want your profit in big bold letter "Assignment fee" simply ask the closing company to change the name of it to something like "Property Management Fee" or "Thompson Management" or ANYTHING you want and it will be on the buyers side anyone. 

Lastly, if you find a situation that you must double close, check to see if they will allow pass through funding so your end buyers funds cover yours.  There are cases where that's not plausible.  If an when that happens, I'd love to have your business as your Transactional Lender.  Please check out Wholesalers Transactional Funding.  I also used to run a wholesale company for years, then I finally got out of it but I still mentor other wholesalers via The Kingdom Real Estate.     

Enjoy a wonderful rest of your week and best of luck getting back into the business sir.  OH YAH, to keep things on the up and up so you don't piss off any sellers and get deals sold the EASIEST WAY is to have your buyers lined up first.  Get their prices on the property, then all you need to do is get the seller below your buyers price and boom!  You don't need to know rehab numbers, arv's etc.  Even if you do, your buyer might think it's higher than yours and would pay more than you might if it were your numbers.  i've learned my lesson!!  

@Ben M. As Daniel stated, I'd double check your contract with the wholesalers.  9/10 times though when they double close, they pay for their own closing costs then you pay for yours. 

But then you have some companies like Net Worth or New Western who charges their rookie end buyers to get suckered in and forces their end buyer to pay for BOTH closing costs all because they never want to disclose anything.  So just double check your contract with them and or ask them because you'll likely want to have a long term transparent relationship with a good wholesaler so you both benefit from one another.

 Absolutely sir, here anytime you need us or additional help on wholesaling. :)

Also, even though the contract might not be assignable, if you have been transparent with your seller, and they're ok with what you're doing, then you can always write an amendment stating that the contract is assignable.  Then assign the contract and don't have to worry about using me for Transactional Lending and save you $.    But I do understand that there are scenarios where you MIGHT or def DO NOT want to go the amendment/assignment route and double close to still take care of everyone and know at least for sure it will close without a problem.