New wholesaler with limited funds trying to understand closing fees

[Alex Blue]

Hello, I'm just starting to pursue wholesaling this month and I was wondering if anybody could clarify what fees I have to pay during the closing process between me and the seller. Can I transfer those costs to an end buyer if ones available?, I have limited funds and mediocre credit so how can I hold this property until I find an end buyer ? I do plan on utilizing a title company and getting an LLC and doing this the right way but I was curious about those potential costs and if there's a way to avoid them with my current financial situation. Thank you in advance for your help!

[Josh Stout]

Quote from @Alex Blue:

Hello, I'm just starting to pursue wholesaling this month and I was wondering if anybody could clarify what fees I have to pay during the closing process between me and the seller. Can I transfer those costs to an end buyer if ones available?, I have limited funds and mediocre credit so how can I hold this property until I find an end buyer ? I do plan on utilizing a title company and getting an LLC and doing this the right way but I was curious about those potential costs and if there's a way to avoid them with my current financial situation. Thank you in advance for your help!

Hey Alex, welcome to the game!! Generally speaking if you are assigning the contract to an end buyer you won't incur any of the costs associated with closing. Putting down an EMD in good faith is one area you may need to spend money temporarily to lock a deal up, but otherwise the benefit of wholesaling is that it takes very little cash to get a deal done. (Outside of marketing expenses which is an entirely different discussion). One major consideration here though is that if you don't have enough money to get the deal done yourself you really need to ensure you can lock up an end buyer so you don't have to jeopardize your reputation by backing out of deals. We only get one reputation, mind it carefully! Hope this helps...feel free to reach out any time!