Real Estate Closings For Wholesale Property Deals

Frank Chen

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.

Location

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
Etc…
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

Buyer Closing

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.