Wholesaling Question

Hello All:

Dealing with buyers, I’ve heard/read 2 schools of thought. One says get your assignment fee up front from the buyer. The other says wait until they close.

Which one & why?

Also, how do you qualify a cash buyer? They say they can close all cash, but how do you know for sure?

Thanks,

Sypher

Each buyer is differnt so both are correct. Some won’t give you a fee until closing in that case make sure you get as much deposit as you can. But always go for the fee upfront becuase you get paid faster. Have them provide proof of funds or but a deposit down to show commitment.

Hi acoleman,

So when you say get a deposit, I assume you mean a percentage of the the assignment fee with the balance due @closing.

Should the deposit be refundable if they back out of the deal? My point being - I gave you numbers and you inspected the property. So barring my repair cost number being a little skewed because you saw something I didn’t, there should be no reason that you don’t follow through at that point. And if my repair costs are skewed then I just go back to the seller with my reasons for a cheaper offer. Or am I totally off base…?

Thanks,

Sypher