Wholesaling and Sellers Closing Cost

[Samantha M.]

When you wholesale and assign the contract, typically does the end investor pay for the sellers closing cost, or does the wholesaler typically cover the closing cost by taking it out of the assignment fee.

If the end investor covers the closing cost, do you put something in the assignment of contract that states this.

[Jerry Puckett]

Originally posted by Samantha M.:

If the end investor covers the closing cost, do you put something in the assignment of contract that states this.

Who pays what closing costs will be covered in the P & S Contract. It's typical for wholesalers to negotiate in such a way that the Buyer picks up all closing costs. It's part of the sales technique: "you wont have to fix up, clean up, or spend a dime on commissions or closing costs."

But the truth is, those costs are taken into account and subtracted from the offer price to begin with. Since all the terms are then a part of the contract, no, you do not revisit in the assignment. How much you ask as for your fee however will be directly dependent on how well you negotiated the contract.