Double Closing

[Eric Tooley]

Hey everyone,

I basically have all the information down about how to wholesale and how a wholesale deal goes. What I want to know is when you find a motivated seller and buyer, what to do next? Meaning like where do you sign the contracts at or where do you complete the deal at? Who does the final transactions?

Also, do you have to have an office? Is that a must?

One more question:

If a seller was selling their home for 100,000 and I bought it for 50,000
What's the highest I could sell it to the buyer for without asking for too much??

All information is appreciated.

[Sharon Vornholt]

Eric -

You absolutely don't need an office.

You can just put the house under contract with the seller while you are at the house. I always get permission to put a lock box on the house to show it (the properties are almost always vacant). If by chance they go home to "think about it", you can either fax or email the contract to them. I do that a lot too.

Then I send my investor buyer over to look at the house. Once they have agreed to buy the house, I just email the contract, and they mail the deposit check to me. I generally work with the same people over and over again.

If the buyer happens to be new to me, I would probably meet him at the house, at Starbucks or another similar place. I get the contract signed and get the check. It they don't know you and have any hesitation about giving you a check, just have them make it out to the closing attorney or title company.

My next step is to email both contracts over to my closing attorney. they run the title and in a couple of days, we set up a closing time.

There is no "right amount" to mark up the property - or an amount that is too much. You should be buying every property using the standard formula which is 65-70% of the ARV (after repaired value), less repairs, less your wholesale fee. This is your MAO or maximum allowable offer.

If the seller names a price that is lower than your MAO, then more power to you. You have just made more money. You can find a ton of info on this topic here at this site and also on my blog and other blogs.