What fees are involved as the middle man in a wholesale deal?

[Greg Hammond]

As the middle man in a wholesale deal, what legal fees am I responsible for? Title search/closing etc. I have a signed sale agreement and notorized memorandum I am sending over to a closing attorney in the morning. I'm guessing I need to pay for the title search or will the end buyer do that? I have the end buyer ready to sign the assignment contract tomorrow afternoon. I just need a little help as I am confused as to what I need to do vs the end buyer. I have a difference of $3500 and I would love to see how much I am going to keep! Thanks in advance

[Carolina E.]

@Greg Hammond if you are just assigning it, you don't have any fees.  The buyer pays for all his due diligence.  You just are responsible for your tax on that money when it comes time to pay your taxes.

[Greg Hammond]

@Carolina E  Thank you for the info! That seemed too easy but sounds great! Off to close next week, fingers crossed!

[Yasmine Bisumber]

Good luck! Congrats :)

[Greg Hammond]

Thank you Yasmine!

[Nikki Robinson]

Congratulations Greg! :)

[Elliot Smith]

Originally posted by @Greg Hammond:

As the middle man in a wholesale deal, what legal fees am I responsible for? Title search/closing etc. I have a signed sale agreement and notorized memorandum I am sending over to a closing attorney in the morning. I'm guessing I need to pay for the title search or will the end buyer do that? I have the end buyer ready to sign the assignment contract tomorrow afternoon. I just need a little help as I am confused as to what I need to do vs the end buyer. I have a difference of $3500 and I would love to see how much I am going to keep! Thanks in advance

 Greg,

Great job taking action! You will not spend any money as your buyer will pay all closing costs. Also if you already have the buyer you should have him place the earnest money down. 

[Greg Hammond]

Originally posted by @Elliot Smith:

Originally posted by @Greg Hammond:

As the middle man in a wholesale deal, what legal fees am I responsible for? Title search/closing etc. I have a signed sale agreement and notorized memorandum I am sending over to a closing attorney in the morning. I'm guessing I need to pay for the title search or will the end buyer do that? I have the end buyer ready to sign the assignment contract tomorrow afternoon. I just need a little help as I am confused as to what I need to do vs the end buyer. I have a difference of $3500 and I would love to see how much I am going to keep! Thanks in advance

 Greg,

Great job taking action! You will not spend any money as your buyer will pay all closing costs. Also if you already have the buyer you should have him place the earnest money down. 

[Greg Hammond]

Thank you @Elliot Smith! I had the buyer put $1000 earnest money down, now I'm just searching for an investor friendly closing attorney or title agency. Most I have called want me to actually purchase the home. I haven't had the sale agreement, memo, or assignment contract filed yet so I'm a little nervous. I believe I have found one that will do a simultaneous closing and they are supposed to call me back this morning, crossing my fingers! 

[Elliot Smith]

Originally posted by @Greg Hammond:

Thank you @Elliot Smith! I had the buyer put $1000 earnest money down, now I'm just searching for an investor friendly closing attorney or title agency. Most I have called want me to actually purchase the home. I haven't had the sale agreement, memo, or assignment contract filed yet so I'm a little nervous. I believe I have found one that will do a simultaneous closing and they are supposed to call me back this morning, crossing my fingers! 

 Why do you need to do a double close? As long as your contract was assignable you should have no problem. You have a contract to buy and you have a cash buyer. I don't see why you couldn't close at any title company? Your only making $3500 correct? it shouldn't be a problem. I just tell the homeowner that I have a partner actually closing on the property and they should be happy as long as its not contingent on financing.

[Jay Johnson]

Great job Greg! 

[Greg Hammond]

Originally posted by @Elliot Smith:

Originally posted by @Greg Hammond:

Thank you @Elliot Smith! I had the buyer put $1000 earnest money down, now I'm just searching for an investor friendly closing attorney or title agency. Most I have called want me to actually purchase the home. I haven't had the sale agreement, memo, or assignment contract filed yet so I'm a little nervous. I believe I have found one that will do a simultaneous closing and they are supposed to call me back this morning, crossing my fingers! 

 Why do you need to do a double close? As long as your contract was assignable you should have no problem. You have a contract to buy and you have a cash buyer. I don't see why you couldn't close at any title company? Your only making $3500 correct? it shouldn't be a problem. I just tell the homeowner that I have a partner actually closing on the property and they should be happy as long as its not contingent on financing.

 I was trying to do a double close so the seller wouldn't see I was making a profit but my problem was actually finding a local title company that even knew what an assignable contract/ wholesale deal was. One even thought I was buying a lot of properties at once lol. I would think this would be more common here but I guess not. I think I've found one now, thanks for the great advice!

[Greg Hammond]

@Jay Johnson Thank you!

[Anthony Davis]

@Greg Hammond

DO NOT use a title company with a signed contract that is to be assigned, because of legal issues. Further, always seek and use a Real Estate Attorney (Attorney who specializes in real estate transactions).

Awesome job completing the first steps in the process!!!

Your attorney only needs a completely executed contract to finish all the details for you. There is no cost to be paid by you. After all parties have signed, insert closing attorney info, then hand it over to attorney for title, recording, delivery, and finalization.

You Are On Your Way!

Anthony Davis

[Wayne Brooks]

Your signed purchase agreement will/should detail who pays what costs.  You can't double close without your own money, and there is no need to.  You have a "notarized memorandum" of what?

[Greg Hammond]

Originally posted by @Wayne Brooks:

Your signed purchase agreement will/should detail who pays what costs.  You can't double close without your own money, and there is no need to.  You have a "notarized memorandum" of what?

It is a notarized memorandum of agreement. I was told that it will protect me from another investor trying to steal my deal with the seller.

[Wayne Brooks]

Did you record it?

[Greg Hammond]

Originally posted by @Wayne Brooks:

Did you record it?

 Not yet, I was searching for an attorney or title company that knew what I was trying to do. I have found one and I'm sending it over now.