Quote from @Jesse LeBlanc:
@Adam Macias you clearly misunderstood and making assumptions now.
1) I never said you were a newbie nor would I care if you were. Facts are facts
2) I specifically stated NOT to double close and methods to get around it
3) I also specifically stated that someone should be very transparent so there should never be any concern with your buyer or seller and not to double close, especially in this scenario (for MOST cases, especially if you didn't talk with the buyers lender ahead of time)
4) Everyone who reads this post SHOULD review both of my longer posts above, new or experienced, to understand the process more and step by step vs just your comment without explanation stating "biggest thing people need to understand is that 99% of the time a seller is not concerned, cares or even knows what an assignment fee is" as there is more to that especially for a rookie. They don't know what that means. That also doesn't help or answer the question to the original post, may have nothing to do with the seller but 100% will potentially have an issue with the end buyers lender and losing the deal completely.
I'm focused on adding value and explaining the process, the why and the what if. :)
Not making assumptions, stated my viewpoint on the topic.
What did you mean by, "and otherwise hiding your fee from someone". Hiding is an interesting word because according to the dictionary it means:
the action of concealing someone or something.
- the state of being hidden."the shipowner had gone into hiding"
Further "concealing" means:
keep (something) secret; prevent from being known or noticed.
So what I'm implying, not assuming, for anyone reading this conversation is there's no malice if the seller's doesn't know, see or understand what your assignment fee is.
Did this provide enough clarity or did I misdefine my intentions?
Because you also said, "your seller is fine with what you made". Well, what makes you think they wouldn't be fine unless you think you're doing something wrong? I don't need the double closing process explained because I've done them before.
Three biggest flaws with them for me are:
1. You place more earnest money than necessary most of the time and it comes from you, not your end buyer which is tough for most beginners in wholesaling to consistently risk that.
2. You lose more in your profit because of fees from the transactional lending.
3. It takes more effort because you literally have two closings.
This is nothing against you personally and I'm not saying transactional lending is never going to be necessary. Also, I remember when Colorado omitted the assignability clause in the state contract 10 years ago. That's when this type of lending became popular. People were freaking out because MLS deals were so easy. Man that was a fun time though.
Also, "have a buyer that is greedy and upset with your profit and could walk away", if this is the case don't work with that buyer then. Work with people you'll have a long term relationship with that want to see you win as well.