Wholesaler wants to me to close first?

[Chris Sullens]

I'm in the final stages of buying my first investment property here in Oklahoma City, where I live. I'm buying from a wholesaler, who has been very unreliable. I thought the deal was going to fall through several times. We are scheduled to close next week, and all along she led us to believe that she would close on the same day as us at the title company of her choice, and then we would close later that same day at our title company (turns out its the same company, just a different office). Now she says she needs us to close first so that she has the money she needs to close the other deal. This seems a little backwards to me, but okay, fine. Should I insist that she close at my same title office at the same time as me though? I feel like I might be a sucker if I give her all that money and let her walk away without any real guarantee that she is going to close her end of the deal. I suspect my bank my have a problem with that too. Am I being paranoid? 

[Jeff Filali]

@Chris Sullens you cannot CLOSE FIRST & give her money its impossible to do that. She must be very new to this.  She doesn't own it.  She's probably worried about you or the sellers finding out how much she's making, and probably doesn't have the funds to close, which is technically illegal in Oklahoma.  But if its a good deal for you, you can make the deal work.

Its a simple wholesale deal really.  You will need a title co that knows what they're doing though.  You need to do a "simultaneous close" with A-B, B-C, and C's funds are funding the entire transaction. A: Owner, B: Wholesaler, C: YOU (Buyer).  The wholesaler only ever owns it on paper for a matter of minutes.

You will all close with the same title and escrow agent.  All three parties will sign, there will be two sets of closing docs. 

Set 1: From SELLER (A) to WHOESALER (B)

Set 2: From WHOLESALER (B) to BUYER (C)

You'll pay your money to the Title/Escrow company.

The wholesaler will sign both sets 1st one transferring from A-B and 2nd one transferring from B-C.  Example: First set is for $50,000 plus closing cost, second set is for $55,000 plus closing cost.  You'll pay $55K + Closing Costs (minus any prorated taxes), Seller will receive $50K - any prorated taxes; Wholesaler will receive the $5K difference.

[Solicitation Removed by Moderator]