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Updated almost 8 years ago,
Wholesaling a property you don't own
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