Clarifying the wholesale transaction

[Timothy Franklin]

Hey all,

I would like someone who is experienced in wholesaling to verify the accuracy of my understanding of the wholesale transaction. I understand the process as follows:

Step A: wholesaler places property under contract. (A-B)

Step B: wholesaler places buyer under contract (B-C)

Step C: Closing
Wholesaler (or PML) wires title company (not the buyer here) The funds for Step A contract). Buyer wires funds for Step B to title company). Title company processes transaction and finalizes sale. Title company issues check to seller. Remaining money (less title fees) in escrow is returned to wholesaler (less PML funds and fee if used) with the remaining from the Step B contract.

The reason being is that it is illegal to sell a property you do not own. From my understanding you cannot place a wholesale contract and have no funds to complete the transaction using only the buyers capital.

is this accurate from your experience or is there anything missing? Thanks in advance.