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Author Topic: Working with wholesalers / option agreements / closing ??  (Read 2345 times)

Offline RealDealBuyer

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Working with wholesalers / option agreements / closing ??
« on: March 15, 2011, 02:11:39 pm »
Hello to all

First let me thank you in advance as reading your postings and responses have been plenty helpful.

I would like to get some clarity on working with other wholesalers in your area as i have been contacted through my marketing by some other wholesalers who would like to link to get deals done.

my ?? is would this work out for the better for both of us and how would we go about doing a deal they suggested using an option but i am not as familiar as i would like to be with the flex option.

how could i ensure that they will hold up their end of the bargain if we move forward with an option do you record it send it to title company how does it become legally binding to where they must hold true to the contract. i ask because unfortunately sometimes not everyone does what they say and i like to operate my business with integrity.

i would greatly appreciate any response to this topic as i am looking to network with others and would like to know what im up against and what tools are the right ones to use.

while i have your attention if you may can anyone clarify the steps of a double closing and how that would play out in a deal. would my profit be completely concealed from the end buyer whom i would be using to fund the close ??

Thanks in advance.

Marcel

Offline atlaspm

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Re: Working with wholesalers / option agreements / closing ??
« Reply #1 on: March 15, 2011, 02:33:15 pm »
a lot of times this comes down to who is more experienced and how much you trust the wholesaler.  you can always assign other contracts, but being in touch with the seller is very very important.

Offline nsu1997

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Re: Working with wholesalers / option agreements / closing ??
« Reply #2 on: March 15, 2011, 04:25:05 pm »
Hello to all

First let me thank you in advance as reading your postings and responses have been plenty helpful.

I would like to get some clarity on working with other wholesalers in your area as i have been contacted through my marketing by some other wholesalers who would like to link to get deals done.

my ?? is would this work out for the better for both of us and how would we go about doing a deal they suggested using an option but i am not as familiar as i would like to be with the flex option.

how could i ensure that they will hold up their end of the bargain if we move forward with an option do you record it send it to title company how does it become legally binding to where they must hold true to the contract. i ask because unfortunately sometimes not everyone does what they say and i like to operate my business with integrity.

i would greatly appreciate any response to this topic as i am looking to network with others and would like to know what im up against and what tools are the right ones to use.

while i have your attention if you may can anyone clarify the steps of a double closing and how that would play out in a deal. would my profit be completely concealed from the end buyer whom i would be using to fund the close ??

Thanks in advance.

Marcel

Essentially it works like this, IF the other wholesaler find you a buyer both of you get paid whatever you agree upon. The agreement is non-exclusive, which means if you find a buyer first then they're out and you owe them nothing. That's what the option does. It's a great arrangement in my opinion because your deal will certainly get much more exposure. And because the option is non-exclusive there's no reason not to have several other wholesalers out there working your deal.

If they don't find a buyer then they don't get paid and their option is null. You can't force them to do anything, so there's no applicability of them holding up their end of the bargain...if they do great, if they don't oh well. If they do find a buyer then simply send everything to the closing agent and see to it everyone gets what they are supposed to get (you especially).

Double closes simply means there are 2 settlements, one where you buy the house and one where you sell it. Yes your profit is completely hidden from the end buyer. The mechanics aren't important, that's what the closing agent is for...just send them the paperwork, tell them what you want them to do, do what they tell you to do, and let them do their job. Just make sure you get paid.

Offline RealDealBuyer

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Re: Working with wholesalers / option agreements / closing ??
« Reply #3 on: March 15, 2011, 05:09:44 pm »
nsu1997

thanks for that vital info much appreciated.

how would the double closing hide my profit does the closing agent just not disclose that fact to the end buyer such as if they were just directly buying from me ?? is there a certain amount i should go after a double close to do so.

how does the process go if i intend on using the end buyer to close the whole deal. would it need to be the same day for this to take place and are title companies used to this taking place are there any you can recommend i by the way am from the bay area california .

Offline nsu1997

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Re: Working with wholesalers / option agreements / closing ??
« Reply #4 on: March 15, 2011, 05:25:54 pm »
nsu1997

thanks for that vital info much appreciated.

how would the double closing hide my profit does the closing agent just not disclose that fact to the end buyer such as if they were just directly buying from me ?? is there a certain amount i should go after a double close to do so.

how does the process go if i intend on using the end buyer to close the whole deal. would it need to be the same day for this to take place and are title companies used to this taking place are there any you can recommend i by the way am from the bay area california .

You're welcome. If there are 2 closings the end buyer never sees what you bought it for, he only sees what he's buying it for. There will be 2 sets of some closing costs which will eat into your profit, and those costs depend on where you live, the transaction amounts, etc. It's a case by case. Here in MD with 2.5-3% transfer taxes double closes are out of the question in most cases. Your closing agent can give you an idea of what you'll be dealing with. Unless your profit is ungodly high I'd just do an assignment and keep it simple...the end buyer knows you're in it for something.

Yes they will probably close both transactions the same day but it doesn't really matter, again they handle the closing mechanics. Just use a title company that is familiar with creative real estate...they can be found by asking around at your local REIA meetings.

Good luck!

 




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