Wholesaling A Property

[Abrahim Alderwish]

When wholesaling a property who actually needs to be a the closing table. Do all three parties have to be there on closing day? How exactly does the closing work and how does everyone get paid. Another thing is what if there is a mortgage or back taxes owed on the property how is that paid, does it come out of the sellers check at the time of closing or do they get the money and have to pay after the sale? Thank you, hope someone can answer my questions.

[Will Barnard]

Any real estate closing will be completed by a third party, which is either a licensed escrow company or closing attorney and you will also have a title company involved to pull the preliminary title report and provide title insurance for your purchase. Any amounts the seller owes will be deducted from the sale proceeds by the escrow company or closing attorney, including back taxes, outstanding mortgage principle and interest, transfer taxes (if applicable), closing costs, etc. Never should any of this be paid outside of escrow.