No your not! - Posted by Mark-NC
Posted by Mark-NC on July 15, 2001 at 11:15:57:
First of all, you do not have to do a double closing if your wholesale flipping. There are times when you may want to if it is a larger sum, that you may not want to disclose, or if you are dealing with a seller that won’t let you assign contracts ( but there are ways around that).For the most part you should be trying to assign your contracts. For one reason you will only have one closing cost instead of two.
For Someone who hasen’t been through a double close there is always this big anxiety thinking that everyone is sitting at the closing table together thinking that everyone is going to find out what is going on.
That is not a problem or the case. Because of the fact that it is two seperate closings, you can close at seperarate times. What you do is time them far enough apart ( maybe an hour) that way your buyer and the seller never see each other, the contracts or the hud 1 settlement statements from the seperate closings.
There is something else you have to understand. If you are dealing with people that will under cut you, you are dealing with the wrong people. Plus the fact that if you have a contract on the property, they can’t go around you anyway, they have to buy it from you.
Once you get into this you will find that most Wholsale Buyers will have no problem at all paying your assignment fee. As long as the numbers are right they will be happy to get the deal from you and pay the assignment fee. I know that may be hard to understand but these wholesale buyers are looking for deals to be thrown at them and they will gladly pay the fee to get them if it fits their needs.
I had this same discussion with my Realtor the other day. She knows what I am doing and has seen me wholesale a few properties through the offers I have made with her.
She asked me why wouldn’t wholesale buyers come to her instead of buying through me and paying an extra fee? My reply was It’s not an extra fee at all. You have to understand these people are busy doing the rehab or what ever it is they may doing, they know what they want but don’t have the time to get out there and pound the pavement to negotiate and find these deals. That’s what I do for them and that’s why they will gladly pay me an assignment fee it’s just part of the purchase price for them. Just being curious She then asked if she could sell to wholesale buyers the same as I am? I said, sure anybody can but if you present properties to them at the retail list price you are wasting your time and theirs. It has to already be negotiated to fit their criteria before they will even consider looking at it and if you are willing to do that you can sell to them too.