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Hi there,
I am new to RE Wholesaling and very excited to start. I read Jackie’s book and had a question. If you find a house that you’re trying to sign and the seller asks you, “How do you get paid?” What is the best answer to give? Don’t they see how much you get once the agreement goes to Escrow and all the paper work is complete? I re-read Chapter 9, lesson 6, which covers “What to say when talking to sellers.” It doesn’t cover that specific question if it comes up. I may have missed it, but if someone could reply I would appreciate it. Thank you! C.As a wholesaler, you are NOT getting paid a commission – that is for licensed real estate agents.
When the seller asks how do you get paid, you need to tell them the truth – that sometimes the buyer pays your fee and sometimes you will sell the house for more than the seller is asking. Tell them, “you don’t mind if I make a profit as long as you get your price.. right?”
Cammie
The vast majority of the time you will put the subject property under contract. It should be a contingent contract (option contract) were the seller has to sell to you but you always have a contingency clause or two for your backing out if you wish. That contract is then assigned to your end buyer at closing and you get the difference between what you agreed with the seller and what you agreed with the end buyer as your profit. Your end buyer will see your profit buy the seller will not. If there is a huge profit you do not want to show to the buyer then you will have to do a simultaneous (double close) were you will have the bring the sellers buy out price to the closing table.
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