Wholesaling a property you don't own

[Arnoldas Serksnys]

Hello, i am quite new in REI, and i am interested in Wholesaling and L/O. I read books about wholesaling and L/O, articles, blogs, but i couldn't find the info about particular place of the whole deal - The document closing. When i find a good deal and i start the contract, i pay the deposit, and then i have a time frame to transfer the funds and close the deal, but in this case i don't use my own money for buying the house, then i am selling the house straight away to the buyer that i found. So my question is:

When, where and how should i include myself in the deal? I mean, should i show in the assignment for the seller that i am planning to sell this property to another person? Or should i do a simultaneous close? 

As far as i know, the simultaneous close requires my own funding, because i must close the deal with the seller first and then i can sell it to the buyer. But if i don't have the funding, only the deposit? I found info that i can do the assignment of contract between the seller and the buyer and put myself in the middle as the middle man. But how should i show it? I mean how should i prepare the assignment? Because if i tell the seller that i am the middle man and i am planning to sell this house to somebody else won't he think that he can do this by himself with no middle man included? Same with buyer, will he agree to pay the middle man, when he can try to arrange everything himself instead and save 5-10k. Has anyone dealt with this? I appreciate your time and share. Thank you.

Arnold  

[John Hixon]

@Arnoldas Serksnys I just completed my first two assignments, here is how it works.

 - I put a house under contract for $50,000

 - Assign to buyer for $70,000

 - At closing buyer brings $70,000.  Closing company gives seller $50,000 and give me $20,000. 

You can find an assignment form on the BP file vault, it is basically just instructions to the closing company on who is buying and selling and at what price.  

Now, when I sign a contract with a seller I put down $3,000 earnest money which is replaced with the new buyers earnest money once I assign the deal.  I also make it known from the very beginning that I will be assigning this deal.  I even have an addendum to the contract that the seller signs which says I will be assigning this contract.  In the little experience I have had so far sellers really don't care as long as they are still getting the agreed upon sales price and the closing is on a certain date.

As far as showing the property goes, I have one serious cash buyer who takes one look at it and buys it.  

The process is really simple. Just make sure you understand the contract and know what dates are in the contract.   If you forget about a date then you are screwed and you will lose your earnest money so keep track of those.

Any other questions, feel free to ask.