Just getting into wholesaling and so far so good. 3 closed this month with 2 more for April. But…I’m losing money on closing costs. I am closing on the REO’s and then closing a day later with my end buyer. How do I handle a double closing? With a fisbo wholesale I understand how it works but when wholesaling REO’s I’m trying to figure it out.
One thing that I have done that saves me $200 per transaction side is to try to get the closing fees from the title company waived, another option is to tie the home up under contract and add the buyer on as a purchaser take your fee when you add them on then deed yourself off at closing. there are alot of variables that determine how to save money, without more info its hard to say.
That sounds interesting. Can you elaborate further? If I read right, he’s doing REO’s. I thought you could’nt do that with REO’s…but you obviously know more. Can you briefly explain how to do that? Is that considered wholesaling? I thought wholesaling REO’s were non-assignable? Hmm… :help
to suppliment Eric, there are many costs/fees that are sort of irroneous and can just be waived and/or are too high and you can sometimes negotiate for lower fees if you simply ask. ex: Orginations Fees, Closing Review Fee, and Download Documet fees are just some that can be waived
Big Jewels, I believe that Eric means to add them on as a buyer with you to the contract you have, they pay you your fee and then during closing you are taken off the deed. there is no assigning being done at all.
Eric, you’re a life-saver, I have 2 condos I’ll be making a very pretty sum from and since they are short sale, I can’t assign them and I was looking for a proof of funds letter. Now, I can just add my buyer on and deed myself off…(quit claim?). I could kiss you!
My buyers are using conventional financing and I’m dealing exclusively with REO’s. I have asked for a few things to be taken off before and its worked, in regards to title company fees. I do use the same title company for both transactions. Wholesaling with fisbo’s is pretty straightforward but with REO’s I’m struggling to get more bang for the buck. Again I’m making money which is important.
Like RAJ said ask for some closing cost credits from the bank and that would put a little more into my pocket. Not being afraid to ask is not the problem. I always want my offer to look the best to the bank so the less contingencies the better.
What Ericmedem offered is the reason that I havent used wholesalers for finding properties. They all seem to want cash at reassinment as opposed to closing. The fees were not small but the spread was large. I just missed out on a deal for two rowhouses in Baltimore because they wanted 20k each. I would have paid the fee but not in cash out of my pocket.
If I could find one willing to take their fee at settlement they’d be a good source for finding properties.
If you’re not looking to cut them out and know it’s a great deal, what reason could you have not to pay them up front? I have changed my mind about this because I have found trustworthy people to work with. However, before bringing them bigger deals, I collected a small ($5000) fee up front for a deal. at the very least, you should have offered them half at signing nad the remainder at closing. You missed out on the deal, but another investor did not. Was it worth it for fees you would have paid anyway?