who pays title/inspection?

Bird Dogs, Wholesaling
1

Hi all;
I have been doing CA’s for a while and want to do some basic wholesaling as well. I am familiar with the basic process but have a few simple questions:

  1. once I lock up a property with a seller, do I need an official inspection, or can I have a rehab contractor do this. If so who pays for it and when?
  2. same with title checks, who pays and when. Do I pay for both and get it back from buyer or does buyer pay for it upfront? Thanks for any help!

Eric

2

For our wholesale deals (After they are under contact) we get an experienced rehab contractor to do a work estimate. Run full title search, and get a pest inspection before we market our properties to our end buyer. This way they can pay us our assignment fee without having to worry something is going to pop up in the deal and not have it close. We pay for the estimate. We also pay for any upfront cost for title search and pest inspection which the end buyer will pay for at closing.

3

I have wholesaled over 100 houses. What I do is once the property is under contract I have the attorney run the title search. When the deal closes the new buyer pays these fees in their closing costs. I don’t have anyone check out the property because that’s the new buyers responsibilities since they are essentially the new buyer. As a wholesaler you shouldn’t have any expenses on any deal. Plus most people don’t trust your information and rather do their own due diligence.

4

aaron what part of the country are you in? you are not in atlanta are you? name sounds familiar