All Forum Posts by: Trent Dues

Wholesaling can have its risks, especially if you enter an agreement without the fine print specifying your liability/ who gets what earnest money in the event of the deal falling through. Have you partnered with or worked for any wholesalers that have had proven success in your area? Learning from those with a proven track record is always the best bet, but if not, just be sure to have an attorney review any contracts prior to having them signed

Hi Bryan, you will need to calculate in closing costs from both selling and buying your new properties, which will be several thousands when it's all said and done. During your sale, in PA, the seller can expect to pay 6% of the sales price in commissions, plus a likely brokerage fee to their agent, along with ~1 to 3% of the sales price in transfer tax, depending on the municipality the property sits in, and a few various fees to the title company. When purchasing your new home, again, expect to pay half of the transfer tax and fees owed to your new lender and/or mortgage broker, title agent, and any brokerage fee to your real estate agent's firm, and prepaid interest and escrows for yearly taxes. Some of the cost during your purchase can be rolled into your new mortgage, instead of fronting the cost at close, which can be worked out with your lender while shopping for a new rate.

Hi Jacquelyn, if you are still in search of a title representative, the easiest route is a google search of the area, and contacting their main line to ask them directly. A representative will undoubtedly want to assist you if their company policy allows wholesale transactions. Keep in mind, licensing is by the state, not the city, so also check out reviews for title companies that aren't necessarily in the area of the property that can offer the best pricing for your buyer and seller.

Hi Kayana, the company I represent is not licensed to service closings in NY, but I would be happy to try and answer questions you may have about the process. Feel free to message, and best of luck

An agent is without a doubt an asset for most closings, but a sale can definitely be done without one. It's the same concept as wholesaling, where you cut out the agents, but in this case you're the end buyer. If you have a lender willing to fund already, do a Google search for a free real estate contract for your state, fill in the blanks and present it to the seller to sign, and from there, finding a title company is your next step. Again, a simple google search will get you in the right direction. The title company will run the search and draw up the final settlement statement, and will also advise you of any municipal requirements needed for the sale. They will also be able to draft your deed and work with your lender to handle all disbursements. Feel free to message me if you have additional questions on what the title company can do for you, and best of luck!

You could establish a lower hourly wage for their effort in securing deals, and incentivize getting deals closed by promising x amount of the final release be paid to them from title the day the property closes. So if your release fee is $10k, for each deal that successfully closes, your partner would walk away with $4k, you with $6k, or however you decide to split the release.  

You definitely do not need to have a lawyer to go under contract. There are free, legal contracts for each state online that you can print out and have your seller and yourself sign, and then send the signed contract to a trusted title agency to prep your deed and settlement statement if purchasing cash, or to your mortgage broker/lender if financing. Lawyers are more common on the selling side, especially if dealing with estate documents and tax filings.

Hi Johanna,

Getting into wholesaling inherently has its risks. Do you have a sales contract template that you are confident will protect you, and a few solid leads for an end buyer? You have to also be comfortable with potentially losing your earnest money deposit if things fall through with your buyer, and the seller is unwilling to wait any longer for closing.  Depending on your contract, the seller may expect the full deposit to be given to them at the expiration of your contract, so be sure to outline clauses that allow you to continue to market to new buyers.

Of the platforms you mentioned, which do you see as your preferred method? I do not have any experience in this category, but I am very interested in the concept, and would like to learn more

Thank you for your service Danny, and as mentioned in a few other comments, it would be difficult to close with your current cash in hand with a traditional lender, but with a VA loan, you could very well be fine with securing a property. Based on your timeline, it may be wise to sign a limited power of attorney appointing a family member that you trust to make decisions on the property while you are away, and give signing authority to prevent a deal from falling through.