Negotiating a Wholesale Assignment Transaction

[Alexandra King]

Hi "Savvier-then-me" Investors,

I'm a SoCal investor (wholesaler - only cash sales, no double closes) and have a question about the assignment steps in a wholesale deal, as I have conflicting data about how the procedure is negotiated during the assignment. One school of thought says that you don't have to put down a EMD to put the property under contract for an end buyer; that the ends buyer does this. This means you need an end buyer ready-willing-and able as soon as the property is found. As far as I am concerned this makes me just a Bird Dog, not a wholesaler. Another says you do have to put the property under contract with an EMD and you have 36 hours to do this and to get it to title where the property will be checked for liens and all financials clarified. Then, you search for the end buyer and, once found, get the EMD back + your fee. Which is true? Thank you, Laurie