Investor Friendly title company

[Kris Copeland]

On my 2nd wholesale deal but the title company insist on putting assignment fee visible to seller. I heard from different podcasts that only buyer should see fee. Should I search for different title company or have rebuttal ready for seller if they have any objections?

[Jesse LeBlanc]

@Kris Copeland First of all, CONGRATS on your 2nd deal!!  

If you do an assignment, then the fee must be shown on the HUD/Settlement Statement. Anything that has a cost has to be on there, it's checks and balances, which includes your assignment fee. Generally your assignment fee will be on the buyers side as they're the ones paying your fee, not the seller. So MOST likely, even though the seller can see it, they generally don't care about the buyers side, they focus on what they are getting back and what on there end was being paid off.

One thing you could do is label your fee on the buyers side as "Copeland Management Fee" for example.  It doesn't have to say "Assignment" if that was a concern.

The other option (which costs you a little, but you'd lose out on closing costs and lending fee) is to use Transactional Lending on a double close where you are the legit buyer, but then same day you are then the seller and your investor is your buyer.  So you'd have 2 closings, same day, use Transactional Lending to fund your purchase then you get the difference once you sell to your investor.  That for sure stops your seller from seeing what you make, stops them from knowing who the end buyer is and it stops your end buyer from knowing the original seller or how much profit you made.  There are MANY reasons a wholesaler uses Transactional Funding, but if you can assign, you'll make more $.

Remember that it's always best to have your buyer first and be transparent with your seller of what you're doing.  Then you never have to worry when you get to the closing table.  You, the wholesaler, DESERVE your fee for helping the seller, solving their problem and bringing a good deal to your end buyer.  Win across the board when done transparently.