Seeing original wholesaler's contract

[Shawn Thom]

When buying a property from a wholesaler, at what point should you ask for the original contract between the wholesaler and the seller. From my very limited experience, the wholesaler will give me the contract that assigns his original contract to you. What I am signing though is that I am agreeing to take over that original contract.... at that point, isn't it appropriate to see that so you know what he & the seller agreed to?

So far i am meeting resistance to getting that original contract. I am assuming it is because the wholesalers don't want me to know (yet) the spread they are getting.

What is normal protocol?

[Carlos Flores]

I am responding to your post from a Texas perspective since we're both in Texas. Assignment, not Double Close.

Sounds like a new business relationship. DD and agree on a price first then read the original PA and Assignment before signing anything. Until such time as you trust the wholesaler, accompany the wholesaler to the Title company. Make sure you give your deposit to the title company, not to the wholesaler or in the wholesaler's name. Get copies of everything, receipts, etc before leaving the title company.

It's entirely plausible the wholesaler won't show you the PA in the beginning of the relationship, ask the wholesaler to give you a copy of the PA with the price blackened out. Just tell him you'll sign the Assignment at the Title Company when he produces original PA with the seller.

Once you trust the wholesaler, then you can sign and give him the deposit for the title company (again, not in wholesaler's name).

I anticipate at least one wholesaler will disagree with my post, saying they demand a non-refundable deposit in their name or you can pound sand. They do this to protect themselves. Well, you want to protect yourself too. Hence using the Title Company to hold the funds.