Closing on a Wholesale Deal

[Ember Meadows]

Hey guys, I have a question. I have done several deals already, but have never completed a wholesale deal. Well I have a deal under contract and I have a cash buyer. The deal is I am supposed to contact a title agency to do closing. My cash buyer does know I am making some money on the deal,but doesn't know exact numbers. I contacted a title agency today and they told me they could not close a transaction for me unless I had the money to close first, then after I closed, they could do closing with me and my cash buyer. I have done some research and I have heard there is2 options, a assignment of a option contract or transactional funding. I want to find out what other wholesalers are doing to close? I would prefer not to have to use transaction funding. I am not sure exactly the paperwork for a assignment of a option contract or how that works? For instance I'm not sure if my cash buyer will pay me the option fee before theres even a title search done. Any timely advice would be appreciated.

[Timothy Rogers]

You are probably not dealing with an investor friendly title company. Not all title company know how to work with investors.

I do a assignment of contract. My buyer always know what my fee will be when we fill out the assign contract.

Here is my process of wholesalin:g

1. put property under contract.

2. take contract to title company so they can open title.

3. assign contract to buyer for a fee and give copy of original contract with seller to buyer. Also, get some type of nonrefundable deposit($1000) from buyer so you won't get burn by buyer. This deposit will let you know if buyer is serious about buying. You would get the rest of your assignment fee at closing.

4. take assign contract and deposit to title company so new buyer and your fee will be on HUD1.

5. wait for closing to get your money.

That is how I do it.

Hope this has given you some clarity.