how does wholesaler get paid

Bird Dogs, Wholesaling
1

this may sound like a silly question but does a wholesaler get paid when he assigna the contract or when the buyer closes

2

Yes they do. Wholesalers get paid for creating and managing deals where both the buyer and seller get their needs met to their satisfaction. In return for putting together the deal, the wholesaler earns either an assignment or option fee.

The trick is knowing how to get paid that fee.

3

what is the difference betwen an assignment fee and a option fee which one gets you paid first

4

both get you paid at closing and at the same time. Difference is that with an option more paperwork is involved and you have a better chance of getting paid.

Use an option when your buyer is getting a bank loan to buy the place from you, use an assignment when the buyer is writing a check to buy it.

Hassan

5

so both an asignment and option means i have to wait till the end buyer closes to get paid also anyone know any investor friendly title companies in ohio thanks

6

You can get paid an assignment fee before closing. Usually you would wholesale a deal to another investor - not the person that would be living in the house. Supposedly, you can get paid all or most of the assignment fee (the difference between your offer to the seller and your selling price to the other investor) up front, without having to wait for closing. What you collect up front should be non-refundable, but you should state so in your Assignment of Contract form.

7

wow, you must really have it going on. there is now way on earth that I would pay an assignment fee prior to getting title. How have you been able to pull that off?

8

thanks for clarifying that

9

To make things a bit simpler think of it like this:

Traditional property flippers buy houses, fix them, ad on mark up then sell “IN HOPES” of making a profit.

Wholesalers don’t sell houses, they sell contracts to other investors. In most cases your job as a wholesaler is to get a home under contract, then sell that contract to another investor, or use a double closing in which case you would write another contract with the end buyer and then close both the transactions and play the spread between the two prices.

There are many other ways to put deals together but those are the two most commonly referred to a “Wholesaling”

Best of luck