Question about wholesaling

[Mike Stahlman]

Hey, I am new to bigger pockets and learning the ins and outs of real estate investing with my wife.  After being interested in real estate for years and selling our rental we are now wanting to use the funds to purchase more property for flipping and or rentals.  

We made an offer on a house that was accepted.  We did our walkthrough and will close on the 14th (9 days from now) of this month.  Since this is a cash deal I see no reason to not close etc.  So I listed it on a site as a wholesale deal.  I got a call on it and the person asked me how much I paid for it.  I think that is odd so I did not say.  I just told him it was listed as a wholesale deal and if he was interested just let me know.  I would be glad to sell the house for the price I listed it for so here are a couple of questions.  In the contract it says it is assignable...

ASSIGNABILITY OF CONTRACT.

This contract is assignable by Buyer, but not without the written consent of Seller if: a) Seller is taking back a note and deed of trust as part of the purchase price, or b) Buyer is assuming the existing note. Assignment does not relieve the parties from their obligations under the contract.

1. Since there is no note, I think can wholesale this house on the same day I close with a double closing and not bring any money to the table.  If that were the case how would I do that?  

2. If I close on the house and pay cash for it, then sell it after closing how much more will that cost, additional closing costs assuming they pay cash.  

3. Since I do not have access to the property I cannot show the property so should I have my realtor show the prospective buyer the house?

Thanks for the input.  Looking forward to hearing the answers. 

[Lori Valene]

Hi Mike,

I am in Washington state so there may be some differences in the answers for your state. Here are the answers I am familiar with,

1. If you are wanting to wholesale, why not assign it to a buyer before the 14th and only pay one closing cost? If you close on it and then turn around 1 minute later selling to someone else, you will have a whole new set of closing fees. Either you or the buyer will be paying.

2. Basically double on taxes and closing fees. Two transactions, two fees. In Washington its about 3% total of the purchase price.

3. You are buying from a realtor? How do you know its a deal a wholesaler would want? Is it a killer deal? Personally, I don't buy from realtors. Owners only. My attitude is why would I pay an extra 4-6% to Buyer/Seller realtors? If you would like help with more answers let me know.

Take care,

Lori Valene