Do you just need an attorney?

Bird Dogs, Wholesaling
1

Hi, Newbie question
Do you just absolutely have to have an attorney to perform the
closing procedures? I am a Loan Officer, I go to closings all the
time, so I do know what is involved in closing. This question is
for wholesale experts. When assigning a contract to a buyer or
investor, do I need an attorney???

Any feedback would help?

2

You dont need an attorney to assign a contract, if you use the proper forms you essentially get your buyer to sign a form that states that they are taking over the contract and they are obligated to fulfill all of the requirements of the contract. This essentially lets you off the hook all together even if they end up not closing the contract. It isnt necessary but I would have the seller sign the form as well stating that the new person is taking over the contract (or at least let the seller know what is going on)

If done correctly on an assignment you dont even go to closing, unless the buyer was unable to pay you your fee prior to closing. If they have the money they are not paying you for the house, they are paying you for the contract.

You may also have them sign the contract with a notary present. This creates a much stronger case for you if you end up going to court.

If you are wholesaling or flipping to another buyer, a title company will be needed if the end buyer is obtaining financing. Banks that are intending on using the property as collateral will require a title company or an attorney to close the deal.

If you have a cash buyer you dont necessarily need to use an attorney or title company, but I would advise it.

If you were to do your own closings, eventhough you may know how, the buyer could have a case against you because the closing would not have been at arms length

I hope this helps some.

Eric Medemar

3

Thanks that helped alot