Cold Caller's Role in Closing Documents for Wholesaling Deals

[Samuel Santos Borges]

Hi everyone,

I'm in the process of scaling my wholesaling business and am exploring the idea of hiring someone to not just make cold calls, but to also play a crucial role in finding properties and securing buyers. This person would essentially be instrumental in putting the entire deal together.

Given the significant role this individual would play, I'm curious about how their involvement is typically reflected in the closing documents, if at all. Specifically, I'm wondering:

Does the person responsible for finding the house and buyer need to be explicitly mentioned in any of the closing documents?

What legal considerations should I keep in mind when formalizing their role in the deal-making process?

Are there any standard practices for acknowledging their contribution in the transaction, or any recommended ways to structure this working relationship to ensure it's beneficial and compliant for all parties involved?

I would greatly appreciate hearing from anyone with experience in this area, whether it's legal advice, personal experiences, or any insights on how to navigate this aspect of wholesaling effectively.

Thanks in advance for your help!

[David Ramirez]

They won't need to appear in any paperwork because they would be working on behalf of your entity. As @Bryant Brislin said, the only name that should appear in the closing documents is your entity's name as the assignor. How they get paid depends on how you want to structure it. If you want them to be paid out of the transaction, they would have to be licensed to receive their commission. If they are not licensed, you could offer them a salary and then pay them commissions based on revenue.

I recommend speaking with a real estate attorney in your state to clarify any uncertainties.