About to pull the trigger on my first wholesale deal (Atlanta, GA), but I have one question? How do I structure the closing so I make sure that I get my fee at the table? Thanks in advance for all of your advice.
we need more info, how are u acquiring? details are needed
Without getting to dull with the details; The property, from a motivated seller, involves the following numbers: Contract Price - $235K; Modest Comps - $295K; Mtg Payoff - $220K. I have an investor that is ready to play ball with this type of property, but (1) I don’t want to short myself (2) nor do I want to short the investor.
You should go to your local REI Club and find buyers and a feel of what they are looking for. {area, numbers}
Then you will know if it a deal or not.
Bruce
Well, the buyer feels that it is a good deal. The part that I am a little gray on is after I have everyone and everything in place is how do I set up the closing? There are two things that I would like to know at this point? (1) What type of fee is typical with a deal such as this (I have control of the property via earnest money) and (2) Is this a deal that requires a double closing in order for me to see my money at the table? I am open to any suggestions.
You can get paid at closing by stapling your original assignment contract that you have with your investor/buyer to the original purchase contract you have with the owner/seller. When the contract is given to the title/closing agent they will put your assignment fee on the HUD-1 settlement statement. You’ll get your check when the deal closes. Just keep in contact with your investor/buyer after you assign so you have a heads up about when the closing date is. You should also find out which title/closing agent is doing the closing so you’re in contact with them too if need be. AND ALWAYS MAKE COPIES OF CONTRACTS THAT YOU SIGN!
As far as how much you should get, Just take your estimated ARV(After Repaired Value) - whatever discount the investor/buyer is looking for - repair estimates(if any) - purchase price = Your Fee
For example:
ARV=$100k
Investor Discount=$25k
Repairs=$10k
Purchase Price=$60k
$100k-$25k-$10k-$60k=$5k < Your Assignment Fee
Thanks a lot kjb1891 along with everyone else. This helps a lot! See you guys with more questions soon!! 
wrong you dont staple anything. you collect your fee when you hand them the contract and sign over your interest to the investor.
Stapling anything to contract is a sure way to be black balled from a deal. Once you hand over that contract, your rights are gone.
Now when you say that you collect your fee when you hand “them” the contract are you talking about the investor?
I don’t think it is point of “new guys” making things more difficult. I think it is more of a situation where vets such as yourself use more than one term and improper structure to describe the same person in a single sentence. Thanks for your help anyway.
I think CharlottePlayer is talking about when the investor/buyer actually pays you up front. When they pay you up front they will pay you out of their own pocket when you assign the original purchase contract. This doesn’t happen too often though. Most of the time the investor/buyer wants to pay you from their financing which will be distributed to you on the HUD-1 settlement statement. So, most of the time they won’t pay you up front out of their own pocket.
CharlottePlayer, different contracts and addendums are stapled to other contracts when they become a part of or change part of the original contract. This is done all the time. It won’t get you “black balled.”
You can not add and addendum to a contract unless the buyer and seller of the original sign off on it. The buyer and wholesaler can not add and addendum without the seller. So what are you talking about? Whenever you sign an assignment agreement it is best to get your money upfront. I would get my money up front, because if the investor cant get financing then you have just wasted time on the contract by taking it off of the market. I want my money upfront unless you have proof of funds, and can close in 3 days, any longer i will give the investor a first right of refusal. Thats as far as i willing to go with an investor complaining about not having the assignment fee. If you cant pay the fee in advance then it seems like you have little invested and how would i know that you are serious about closing?
You said in your quote above that you can’t staple anything to a contract. I was pointing out that this happens all the time without anyone getting “black balled.” I never said that a wholesaler and assignee could add an addendum. I’m not sure where you got that idea. I originally said to staple the assignment contract with the investor/buyer to the original purchase with the owner/seller.
I have never had an investor/buyer willing to pay an assignment fee up front out of their own pocket before. They definately have the money to do it, but they don’t want to. They’d rather pay for it out of their loan their getting for the property.