Real Estate Professional · Mesquite, TX · Member since 2017 · 28 posts · 5 votes
As a wholesaler, assigning a contract, are there fees associated with the title company that I would have to pay.. I am a newbie obviously and just in the planning stages.. I understand cash buyers pay for the closing of the home and earnest money needs to be sent, but are there any other fees that the "wholesaler" is responsible for with title for opening the title search and what not?
@Jackie F., traditional wholesaling is when there is only one transaction and the wholesaler gets an assignment fee shown on the HUD1.
However, some title companies will not do this (and some states may not allow it), so a double close is performed, where 2 closings take place back to back. The first is from the seller to the wholesaler and the next is from the wholesaler to the buyer. This is sometimes called A -> B -> C transaction.
I honestly wouldn't take any reply here too seriously unless they are using the exact same title company that you are planning on doing business with.
So to clarify...I would recommend that you call the TC that you are wanting to use and discuss pricing with them directly. Then you don't have to rely on (probably) inaccurate information and you'll have fewer surprises when you get that first settlement statement.
Jackie F. Generally speaking, if it is a straight assignment, the wholesaler should not may much fees other than maybe a wire transfer fee.
If you are doing a double close then there will be more fees.
@Jackie F., traditional wholesaling is when there is only one transaction and the wholesaler gets an assignment fee shown on the HUD1.
However, some title companies will not do this (and some states may not allow it), so a double close is performed, where 2 closings take place back to back. The first is from the seller to the wholesaler and the next is from the wholesaler to the buyer. This is sometimes called A -> B -> C transaction.
@Percy N. Gotcha.. Yeah I knew of the assignment and HUD1 just no the double closing.. I have been looking into some investor friendly title companies I have some in mind..
When deposits and earnest money is paid, Does that automatically go into escrow with title or do you have to request and escrow acct be open..