I am about to start my REI career and I am starting with wholesaling. I was wondering if I find a deal and find another buyer to assign it to:
a. when do I collect my fee?
b. what happens if the buyer falls through (legally or illegally)?
c. do I just drop off the planet as far as the seller is concerned? meaning do I tell them, “I’ve found someone else who’s going to buy your home with the terms we agreed to.” Or do I let the new buyer break the news. Can the seller back out?
As for the seller and your buyer…
Seller knows up front that you may or may not assign this contract due to the fact you told them and wrote it on the contract.
ABC,LLC[u] &/or Assigns/u and Dick Van Dyke (seller), agrees …
Next contract is written with your buyer…
Mary Tyler Moore(buyer) and ABC,LLC(seller…you), agrees…
Makes sense. Just wasn’t sure if I collected any fee as a down payment to keep the buyer from bailing out. If he re-assigns, it could be a crowded closing room
Can you explain the difference between the following:
double closing
simultaneous closing
And if I assign the original contract, do I need to personally be at the closing (or my lawyer)?
Does the seller see the person I sold it to?
Can the new buyer re-negotiate with the seller or is he bound?
actually I read somewhere recently (after this post) that described a double closing as:
buyerA closes with sellerA. sellerA leaves. buyerA becomes sellerB and goes into another room and sells to buyerB. In this situation, sellerA never sees buyerB.
in a simultaneous closing, all three parties are present (or a representative of them is). All three exchange deed and funds. all is known, including how much buyerA got paid by buyerB, which might make sellerA upset.
hope that wasn’t too confusing. in the course (can’t remember which since I’ve taken so many) the teacher recommended a double closing over a simultaneous closing. But he also recommended selling the contract before hand if possible. you get paid up front, and the new buyer goes to the closing. this way the sellerA never knows and you can find more deals instead of going to a closing. plus you get your money regardless if buyerB defaults on the contract. another tip is to take a little less when you assign/sell the contract in exchange for a percentage of the selling price when buyerB flips the property later on. less now for more later.
