All Forum Posts by: Monique R.

@Belinda you are absolutely right! I don't feel comfortable with it going to anyone other than a title company.

@Joe Gore thanks that sounds like it could work. will see if the seller is okay with that. i really just need the signed contract back from him, which he has refused to hand over. He says he has signed it but wants the deposit in his hand before he gives us the copy with his signature on it.

@Kaz Phillips thanks, the buyer isn’t reluctant to put down a deposit, he is just more comfortable with it going into escrow with his title company. The price of property is 70k. Has 3 floors, multiple bedrooms and baths. It needs a full rehab. The buyer plans to turn it into a multifamily. Comps in the area are in the 250k-350k range.

@Wayne Brooks I am the wholesaler (my partner and I have a wholesale company). So we have the option directly with the owner and are assigning it to the end buyer.

The purchase option contract is 70k. We are assigning this contract to end buyer for 75k, which gives us a 5k assignment fee.

The seller has the LLC with the loan. I believe the loan is a mortgage on the property, but the seller has not been especially forthcoming. In our original conversations he claimed title was free and clear…

And yes we are assigning the Option Contract, not the LLC interest.

The seller wants the $10k deposit to go directly to him through his LLC.

In our assignment contract with end buyer, we negotiated a $2500 nonrefundable fee upfront. This would be taken out of our 5k assignment fee with the other half to be paid to us at closing.

I think the main issue is trying to get this seller to agree to have the $10k deposit given to the end buyer’s title company. He keeps insisting the money should come directly to him. I understand the seller doesn’t want his house tied up, but my partner and I have a good relationship with the end buyer and we don’t want him to be in a situation where he gives $10k directly to the seller and the seller doesn’t hold up the end of his bargain by getting the loan/title situation straightened out, like he said he would do. When money is placed with a title company, the title company can look at the contract and know based on the clauses in the contract who the deposit money should go to in the event a deal doesn’t go through. That’s why both the end buyer and I would rather see deposit go into escrow with a title company.

Thanks, Joe. We can definitely tell the end buyer to just put all of the money in his escrow and close the deal as he wants to get the property as soon as possible anyway. The only problem is getting our original contract (Contract A between wholesaler and seller) back from the seller to go to closing. Wouldn't our original contract w/ the seller have to go into escrow along with our assignment contract, which the end buyer already has?

Hey everyone. My partner and I have a deal with a seller and we have an end buyer who is very eager to buy. He is ready to close ASAP. The seller with the option to purchase contract signed the contract, but will not send it back to us without a $10,000 deposit.

The purchase price of the single family house is $70k. This deposit issue never came up prior to our walk through and or before we sent the seller the option to purchase contract. THe buyer really wants to buy it ASAP and is ready to give us half of our assignment fee which is $2500. Both the buyer and seller are familiar with wholesaling.

The buyer insisted that we use her title company and she needs the original option to purchase contract in order to begin the closing process and also to run the title. Now another issue occured out of the blue where the seller told my partner and I that he has a loan for an undisclosed amount of money with the bank that is in his LLC. He will not tell us how much he owes, but that he will take care of it as soon as we give him a new contract with the closing date and the deposit of $10,000. The end buyer is reluctant to give him the 10k as we would be too. The seller also does not want the money to go into escrow he wants a certified check written out to his company that the house is under. I'm drawing a blank as to how to make this deal work. I feel uncomfortable with the buyer having to shell out $10k. For all I know the seller could take the deposit and not take care of the loan.

Any thoughts on where we should go from here?

Thanks, Susan! It certainly is!

Hi everyone! I'm new to BiggerPockets. I've been coming to this website for quite sometime, receiving lots of valuable information. So I asked myself, why not just sign up!? So here I am.

Now a little bit about myself. I live in NJ and I am focused on real estate wholesaling in the NJ and Philadelphia area. I've recently started to get serious about it and formed an LLC with my partner. Hoping to learn more about the business of real estate investing and build solid relationships with like-minded people. One of my long term goals is to transition out of wholesaling and focus more on rehabbing and buying and holding.

My background is in public relations! If there are any other public relations and marketing professionals who are involved in real estate investing, I'd love to connect and hear your stories!?

I look forward to connecting with everyone on BiggerPockets.