Wholesaling double escrow Question

[Ben Sears]

I'm a beginner wholesaler in Ohio and my attorney said that in order to do an assignment I need funds to close on the property initially then if I want I can assign the contract to an end buyer. I'm just starting so I don't have Funds available. So instead of doing an assignment could I do a dry double escrow Closing where the end buyer will bring funds to close both AB and CB transactions? 

Do I have to bring wet Funds to close the AB transaction or can the buyer fund both transactions?

[Shari Peterson]

I suspect what your attorney may be trying to say is that you must have the availability of funds to close on the deal, even if your plan is to assign it. So you must have the means to do the deal regardless of it you are able to assign the contract. The link provided above about wholesaling in OH is an excellent reference video.

Technically, when you Assign a contract, you are selling the right for another buyer to step into your position as the buyer. In exchange for this, the Assignee pays you the Assignment Fee. When the contract is Assigned to this new buyer, you are no longer a party to the transaction. Your contract must be Assignable for you to be able to do this. Your attorney can advise you on this

Or, perhaps in this particular case, your contract is not Assignable. If that is the case, you must first close on the property using Transactional Funding (the A-B transaction) and then follow with an immediate second transaction (the B-C transaction) closing with the End Buyer. A=The Seller, B=You the Wholesaler, and C=The End Buyer. That would not be an Assignment; that would be a brand new closing.

I know of two Title Companies in Columbus that do double closings. I think BiggerPockets rules prevent me from posting their names and contact info. If you PM me I can provide you with those details.