Qestion about wholesaling in Texas?

[Gary Rankin]

We are new to REI and feel one of the best ways to get our feet wet is to wholesale a property. For the first few deals we would like to wholesale a few properties until we feel comfortable enough to do rehabs or basic flips due to financial reasoning. I have two main questions;

1. In the state of Texas can we simply so assignments with an assignment agreement and have one closing? Or, would we have to do a double closing? Keep in mind we are utilizing cash buyers.

2. (More of an assumption) Is it customary that the seller pays the closing costs? Will there still be closing costs to us and the final buyer we have assigned the property to?

3. In the event we have to do double closing, can we do same day double closing in the state of Texas? Purpose for this question is out of pocket money, or loans, for us if purchaser was to deposit funds into escrow account before first closing.

Thank you, in advance, for your comments and thoughts.

[Undrea King]

@Gary Rankin

1.  An assignment of contract will work in Texas.  Really, no need to do a double close unless you have a sizable profit, since you will incur more closing costs

2. On an assignment you are agreeing on a fee to flip the contract to your buyer.  Your check will be cut for the agreed upon amount.  The buyer will pay the closing cost.

3.  You can find Title companies that will do a Double Close in Texas, you will have to call around ( to several title companies)  or ask at your local reia. In Texas you cannot use the funds from "C", (your end-buyer) to fund both closes.  You will need transactional funding and actually close with the seller, then close with the buyer in a separate transaction.  The Title company prefers for this to be same-day and will need to make sure they have the buyers funds in escrow.  Expect to pay 1-2% for transactional funding.

hope this helps