http://www.REIClub.com – What Happens During Real Estate Closings? Here Are A Few Tips On Closing Real Estate As a Wholesaler…
Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on how a typical wholesale closing works.
The first thing you have to do is find is a title company:
Title company, closing agent/attorney
– Quick – avg 3 business days
– Attorney – look over title work, cleared
Types of Closings – (money usually sits in closing escrow)
– Simultaneous closing (aka. double closing, back to back closing) – using buyer funds to close, buyer shows up first (morning), purpose of this close is to obtain cash at closing.
– Transactional – using short term third party funds to close
– Find the buyer (C of transaction) to repay the third party.
– prefer using your closing agent for all real estate closings
– ease of paperwork
– saves time, energy and money
– closing agent that understands wholesaling deals – back to back closings, double closings
– make sure the seller and buyer show up at different times (morning vs afternoon)
Closing Costs – negotiable
– Wire fees
– Attorney fees
– Tax Service Fee
– Title Insurance
– Title Examination Fee
– Deed Preparation
– although two closings – A to B to C closing
– should not have to pay two full sets of fees
– be more flexible with seller side
– buyers are more flexible with you
Seller Closing – comes in afternoon to sign docs
– seller does not need to know profit margin for wholesaler
– draft a separate settlement statement
– prefer buyer closes first (morning) so can use their funds
– separate settlement statement
Getting Paid – wholesaler gets check for net difference between two transactions
Real Estate closings are generally pretty straight forward for Real Estate Investors. Your main objective as a wholesaler is to make sure that the A and C side of the transaction go smoothly, and that all parties are happy; more your buyer than the seller. This may require your title company to creatively structure the paperwork, to you, creatively negotiating the deal. Just remember, never throw away a deal for a few dollars, eat the cost, make your money and get out.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.
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Special thanks to Khorozian Law Group, LLC for their insight & help in editing this article. You can find their online profile here. This attorney has provided great legal info and we just wanted to send a shout out.