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Updated about 10 years ago on . Most recent reply

User Stats

38
Posts
33
Votes
Kirk Gore
  • Attorney
  • Nashville, TN
33
Votes |
38
Posts

What is the best way (for all parties involved) to close a wholesale deal?

Kirk Gore
  • Attorney
  • Nashville, TN
Posted

So I've found and negotiated a great price on my first prospective wholesale deal. I'm very excited and super nervous to move into the closing process. I printed out a purchase contract and an assignment contract from the BiggerPockets FilePlace and took them to my lawyer today and asked him to look over it and give me his advice. 

I brought up the infamous double closing to him and he said that he absolutely could not do one in his office because he "could not get a title company to write title insurance on the house if it is involved in a double closing." Instead he suggested that I use an assignment contract to assign the contract to the buyer for my entire wholesale fee and then wash my hands of the situation and let the buyer have a traditional close with the seller from there.

For you experienced wholesalers out there who have successfully closed deals, what works best in terms of disclosure and simplicity? Can having the buyer knowing your exact wholesale fee be problematic or is it better to have everything out in the open? Does what my lawyer suggested make sense or should I try to close somewhere else?

Thanks again!

Most Popular Reply

User Stats

252
Posts
86
Votes
JPaul Mills
  • Wholesaler
  • Navarre, FL
86
Votes |
252
Posts
JPaul Mills
  • Wholesaler
  • Navarre, FL
Replied

most of the deals I close are assignments. If I am making larger than 10k I will dbl close. Excuse I don't want my end buyer gettin his/her feathers all ruffled up at my cut. But if you have a buyer that complains about you making 10k then you don't need to be working with that buyer. That's a greedy Pearson and that's what u call BAD JOO JOO

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