All Forum Posts by: Jesse LeBlanc

On a seller finance deal, it's still going through a closing unless it was on land contract. So unless you didn't want your fee on the HUD and get paid from the closing company, if you still didn't want to disclose then you'd have some form of agreement off the HUD that your seller would be paying you (which then you'd have to trust your seller to be guaranteed your $) and then the end buyer would still want to see the original contract (which again, if you built your fee into the initial contract with the intentions of hiding your fee and agreeing to get paid on the side outside closing) then you could operate that way.

I by no means am trying to tell anyone they should be hiding it or go about it this way, but answering a legit way to handle your question.  We all know full disclosure is best and shouldn't matter to the end buyer.   And yes, @Kevin Reinell even then, or for that matter ANY type of sale you can still take your fee overtime to make you more money. With a HML, with a PML, all Cash or 100% loan. Any way your assignment fee could still be turned into a note.

If you don't tell them what your fee is, then they can do the math when they receive your original contract.  So either way, they will know before closing.  With that said, it's always best to be transparent and work with a solid buyer that could care less what your fee is as long as the numbers work for them.

But I have one better.  If your fee won't change your life, then I highly suggest you to take your fee and turn that into a note for your buyer.  Sometimes you can even get a slightly higher fee for doing this PLUS interest as well and collect $ over time giving your buyer more buying power to deploy into other deals @Kevin Reinell

@Ian Stephens I 100% concur with @Duncan Hayes

To make your life simpler, I'd ask some of your local contacts to see what contracts they use.  Review a few, you can modify them to your liking and you can also then have an attorney/title company that you like to work with or plan to work with review and give feedback.   Another option is if you have some solid buyers, ask them what contract they have that they like to review seeing that you plan to work for them finding them deals and if you assign the contract, they already know what they're assuming and will help build a stronger relationship with them as well.

Yes, a double closing would cover the issue with No Assignment @Robert Hamilton

NAILED IT @Duncan Hayes   Too many wholesalers just try to find a deal and they don't even know what a deal is!  They just get the seller to sign something at whatever price the seller wants then they try to find a buyer, usually overpriced, then it just pisses off the sellers and make other wholesalers look bad.

Having your buyer first @Robert Hamilton is the way to go! LLC or buying/selling in your personal name has nothing to do with an assignment clause. it sounds like you might be trying to buy from a seller who has a listed property and they have their standard agent contract possibly. If that's the case, then you can either use your own contract OR if you're very transparent with the seller, then in special stipulations or an amendment you can override that clause by stating it can be assigned. that solves that issue.

The other way would be to double close vs assign, although you spend more money this way, but many wholesalers choose to double close and either use pass through funding or Transactional Funding.  but again, assigning is the way to go!!

Feel free to PM me and we can maybe get on a quick call sometime today/weekend.  I'm pretty sure i'm on the same page but it also might require another step.

@Philip Cook so are you looking to create a note with your seller and then another short term note with the investor?  I'm not clear on where the "make the bank happy" part comes in play unless you mean to pay off the original lender.   If so, then you're not looking for Transactional Funding.    If so, then you're just looking for a normal loan but not conventional for a portion of the house (remaining balance from your seller carry back).

I'm sure plenty of lenders will jump in here. You can also check with Finance of America or Lending One. Both are great HML's

@Nolan Chandler the post won't let me put emails or numbers, so I'll pm you.  But for you and others who see this later, Check in with some of the following:

Mary Mentzer, Paralegal

Chandler & Gibson, PLLC

2901 Coltsgate Road, Suite 200

Charlotte, NC 28211


Harry Marsh Law, now 24 Hour Title

Ross Malloy, Closing Paralegal

24 Hour Title, Fayetteville Office

Sherilyn Knox

Associate Attorney

City of Oaks Law

2021 Fairview Road

Raleigh, NC 27608

What area in NC @Nolan Chandler.  I'm a Transactional Lender and work with a LOT of closing attorneys there and do have some I really enjoy working with.  Generally though, most closing attorneys aren't going to give you a purchase and sale contract, they usually work with whatever the wholesaler already has.  I could send you some but you could also make a post and many people will share one with you.  There most likely are some in the files section here as well.

Yes, you 100% can create a note and record it.  I also HIGHLY suggest wholesalers doing this when wholesaling to end buyers.  It helps you to create long term cash flow, you can collect higher fee and or interest.  The pro for the end buyer is that they are allowing the tenants rent to cover their mortgage, meaning the cash flow covers their mortgage AND what would have been your assignment fee.  This allows the investors to utilize their capital for other investments and buy more deals and in return you get one or both higher fee or interest.

My response was in general for wholesalers, but not directly digging deep into the "Option" part of the previous post.  However, if at any point the end buyer refinances or sells, then your recorded note MUST be paid off, similar to what I believe you were mentioning as the "middle man" on an option.  Which means if you truly are a middle man in a lease option, UNLESS you can sell your rights for a fee.