Closing Costs Paid By The Buyer, I Get That, But....

[James Adams]

I know the closing costs are paid for by the buyer and I understand that. But in a wholesale deal where the seller, the first buyer (me), and my buyer (third party) are all at the closing table, can the price of closing come out of the contract after the new buyer (3rd party) closes? Or does the money have to be paid by the first buyer (me) for that deal to finish?

Sorry, newbie here but very very comfortable working with others.

[Lydia R.]

Quote from @James Adams:

I know the closing costs are paid for by the buyer and I understand that. But in a wholesale deal where the seller, the first buyer (me), and my buyer (third party) are all at the closing table, can the price of closing come out of the contract after the new buyer (3rd party) closes? Or does the money have to be paid by the first buyer (me) for that deal to finish?

Sorry, newbie here but very very comfortable working with others.

 So there are 2 ways to close a wholesale deal. You are either assigning the contract to your end buyer, which means you put the property under contract with the seller and then signed an assignment of contract with your buyer OR you are double closing, in which case you have a purchase agreement with the seller and another one with the end buyer. 

If you are assigning the contract, there is only one set of closing costs and it is paid by the end buyer. If you are double closing you will be responsible for the closing costs between you and your seller and then the end buyer will be responsible for the closing costs between you and them. You will also be responsible for the cost of the transactional funding used to close the transaction with the seller, but that cost comes out of your fee after you sell the property to the end buyer.