All Forum Posts by: Joey Soewargo

I understand the process in which double closings and assignments occur, but I'm more struggling with the concept of where the numbers fit in. For a wholesaler, I would simply try to get a good deal on a distressed property and do so with the help of hard money/private lenders (a 70%-80% + 20%-30% ratio), then sell that contract or property to another buyer with an included finders fee i.e a contract for 50,000 plus an added 10,000. 

This would mean that from the 10,000, I would use a percentage of that to pay off the interest that came from the loan is this correct?

I am also unsure of how that works in a double closing. 

If someone could also explain that, I would greatly appreciate it.

For example, I found a great house --and I mean great from a fix and flipper's standpoint-- in a great location covering 937 Square ft, but the house has no appliances among many other things. When calculating costs in order to get a profit, what is the threshold in which I am adding unnecessary expenses. Should I plan on getting new appliances, used, or standard appliances that serve their purpose? Or would this be something that the buyer worries about? 

I'm also curious about paints I should use --for cabinets, walls, etc.-- and also when updating the kitchen, how do I go about updating the counter tops i.e granite, marble, tile. As of right now, the kitchen is entirely wooden, which from what I've heard looks and is undesirable.

The carpet as well seems to have taken a lot of damage so how would I go about repairing that, or when should I think about changing the flooring to porcelain or tile (considering it's in the kitchen)?

I was also seriously considering replacing the window AC units with central air because I think that would help increase value but it's also added expenses.

I'd like to hear your guy's opinions and experiences as fellow wholesalers. Any input and constructive criticism is also welcome as I am trying to eat up as much information as I possibly can. Thanks!

Hi @Don Konipol, thanks for reaching out!

If I could burden you some more, I was hoping for some more insight. 

I wouldn't be able to purchase without liquid cash on hand and the transactional lender would not be able to act correct? So how would I close the first deal? And could the interest rate vary depending on my history with lenders (not just because it comes on such short notice)? or does that depend on the buyers history?

And while the last paragraph was very helpful about clarification on roles, I was a little confused about the last point you made. Correct me if I'm wrong, but that wouldn't give you a net profit, much less give me enough to pay back the transactional lender.

If I'm not mistaken, double closing is essentially I enter a contract that includes person A - person B (me) that only involves the rights to the property not the property itself, then once that's complete, I would sell that contract from person B - person C. Usually this process takes about a couple days as well.

But if I were someone starting out with little to no liquid funds, this would mean I would have to approach a hard money lender willing to give me transactional funds to purchase the rights from person A, and once that is complete, I would sell to person C at a higher price that would help me pay back the hard money lender and earn a small profit at the same time.

I also was curious about where do the funds come from to receive a title search, inspection, etc. Does that come from me or the end buyer? or does it vary for each situation.

But what's stopping person C from reaching out to person A directly? 

What exactly makes the middle man (me) desirable?

What is my role as the middle man between the two (other than simply connecting them together)

I'd appreciate any input since I'm still starting out, thanks!

I'm new at wholesaling so to start off, I want to begin with a good title company that's investor friendly and capable of double closing within the DFW area. Any recommendations on places you've worked well with before would be greatly appreciated!