Hey Guys,
I have a question that I need clarified please; I tried looking this up in earlier post…
If you have a property under contract and your goal is to assign it over to an end buyer, what is your ROLE as a wholesaler in terms of due diligence?
As a wholesaler, are we suppose to check/pay to find out if there are any liens or judgments on the property? Are we suppose to pay to have an professional appraisal done? And if a property is about to go into foreclosure, are we suppose to ask the seller for copies of their mortgage information to give over to the buyer? Don’t know if I’m over thinking this, I just would like to be prepared.
Thanks
Hi,
It depends on who your wholesaling to: If your wholesaling to a fellow investor or end user either one, you will set up and do what ever they request at your end buyers expense.
As a investor I might take a property I look at completely “As Is” or I might say “I want a termite & pest control inspection” in which case as buyer I am expected to pay for it!
If I am selling to a end user (Homeowner) who asks for a “Home Inspection” tthen they are expected to pay for it.
Now what you have to coordinate if you have a contract and don’t have the ability to buy reguardless and close whether you have a buyer or not is to fit your end buyers requests into your primary contracts contingency period’s!
If any end buyer requests an appraisal or needs one done for there loan, it is at end buyers expense!
Title or escrow company makes sure of liens or judgements and checks title and issues title insurance!
Seller information from primary goes to escrow and end buyer gets seller information from you if your doing a back to back transitional funding closing! If your assigning the contract then the buyer of your assignment gets all information from seller to buyer for that contract entered into escrow!
Good luck,
GR
I don’t see the DD. I take the word of the seller that prop. is free and clear of liens etc… Contract goes to title (which I get reimbursed for if seller is lying about having a clear title.) Because my figure when I present house to investor is based on clear title. I am not paying for anything. I just want my assignment fee… I say keep it simple because it is so simple!! It’s the not knowing the steps involved that makes it confusing.
I think its those steps that confuse me too. You mentioned contract goes to title company? When do you do that and who pays? Ive always thought I needed to get a title search before anyone would even touch my assignment etc.
Check it out guys, if you have your numbers right and the deal is super slammin, go find an attorney or title company, let them know what you are trying to do, and the first time you just may have to spin $50-$60 on getting a chat done on this property. Again be very confident in your numbers. If you’re not confident in your numbers, and you are second-guessing the contract, you may want to think of a different strategy. Overall but the deal is that good, like it should be, spending a few bucks for that title check is peanuts. The good thing about his business other relationship that you build with other business owners such as the title company or closing agent. I don’t even have to pay for these anymore because my attorney knows it is going to get paid for the closing. :beer