Help structuring wholesale deal

[Chris Schlechta]

Greetings, We are working with a new wholesaler and trying to structure an assignment of contract (our first purchase from a wholesaler). The current contract the wholesaler has is not assignable, however he will correct that with the seller. He originally entered in to this agreement for himself as a BRRRR, but then found out he had too much on his plate to continue and wanted to wholesale it.

Once the purchase contract is assigned to us and we enter into the assignment contract with the wholesaler, are the wholesalers fees then paid out at closing and documented on the HUD-1? If the purchase price from the seller is $115k, the wholesaler's fee is $10,000, is our purchase price reflected as $125k on the HUD1? We will be financing this purchase, so we need to roll in that wholesale fee to the loan. I understand that typically a portion fo the fee is paid on execution of the assignment contract with the balance at closing, but to get this transaction to work the wholesaler will be paid his fee at closing.

We could do a double-close but we threw this out as an option to the wholesaler to put a little more money in his pocket and save his portion of the buyer/seller closing fees on the AB side of the transaction.

Any direction would be appreciated.