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Never have done a wholesale deal in my life. Always bought and held for rental, or bought and sold. What is the wholesalers on CFD method of choice?
1. Close with the seller take title and re sell to wholesaler.
2. Just simply assign your contract from the seller to the wholesaler for an assignment fee.
3. Have a contract/option with you and the seller. Have the buyer and seller go into contract to purchase and you release your contract/option at the closing table and it shows on the HUD 1 as an expense to clear title flaw.
4. Simultaneous close (double closing).Don
Don
Like most things in life, the answer is it depends. When I first started (20+ years ago), I just assigned my contract to an investor who closed the deal. The sellers were fully aware that I would be selling the property to someone else for a profit. I turned in the original contracts and my assignment form to the title company. I was paid by the title company.
But, as I got better at finding and negotiating wholesale deals, the profit margins got bigger and bigger. I found that rehabbers were not willing to pay more than a $5,000 assignment fee so I switched to doing simultaneous closings. I much prefer this method because neither the seller or the buyer knows what my profit is.
Jackie,
Thank you for your input. Kind of what I thought, but if you don’t ask the pros you never know. Small profit deal just assign the contract. Big profits hide the profit made by a simultaneous close. Makes perfect sense. ThanksJust a side note the “Magic Man” came up with someone to write press releases. Can I run a audition release by you to see if they know what they are doing?
Don
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