Question: “What’s the best way to handle the closing for a wholesale flip?”
Answer: “The short answer is to let the title company handle it. Your job as a real estate investor is to find the deal, get it under contract, and then get the property sold. Focus on finding deals and getting them sold.
That being said, there are two basic contract arrangements for wholesale flips. One is a double closing and the other is an assignment. I use a double closing arrangement 99% of the time when I do a wholesale flip. I’ll describe how to do a double closing in this article.
The reason I prefer this type of closing is that your buyer doesn’t know what you are paying for the property. They may have a big problem if they find out you are making what they think is a lot of money on the deal.
To set up a double closing, you have a purchase contract with the seller. You also have a separate contract with the individual who’s buying that property from you. You can use the same contract for your seller and your buyer.
You take both of those contracts to the title company (the same title company). They will handle all the details of the closing. That’s what you’re paying them to do. You do need to verify up front they are an investor friendly title company. You need to share with them what your intentions are in terms of the closing. Some title companies cater to retail realtor closings, and they will not be familiar with this process. That is a title company to avoid.
When the title company has completed the title work, they will call you to tell you they are ready to close. Ideally, the title company will do the closing with your buyer first. Your buyer will be putting up the cash to pay your seller and you on the deal.
Again, the mechanics of the transaction aren’t as important as being able to find a deal, a good deal and get it into contract. You also need to be able to line up a buyer who has the cash to close quickly.
It’s also nice to give your buyer a shorter time frame to close on that property than you have. For example, if you have 30 days to close, you might want to give your buyer one week to close on the property. That way, if they wash out for some reason, you still have time to find another buyer.
Your buyer will most likely want to close the day your contract is runs out. But you can’t let them do that to you. You can’t let them walk all over you. Try to get them on a shorter time frame.
If they got the cash, then why can’t they close it in a week?”
Do you have other questions or comments about doing wholesale flips? Please Leave them in the comment box below.
March 7th, 2011 at 2:18 pm
I think youve produced some really interesting points. Not too many people would really think about this the way you just did. Im actually impressed that theres so significantly about this subject thats been uncovered and you did it so well, with so very much class. Good one you, man! Really fantastic things here.
March 7th, 2011 at 4:13 pm
Just a fast hello and also to thank you for discussing your ideas on this web page. I wound up in your blog right after researching physical fitness connected issues on Yahoo… guess I lost track of what I had been performing! Anyway I’ll be back as soon as again within the future to check out your blogposts down the road. Thanks!
March 8th, 2011 at 9:12 am
Thankyou for this post, I am a big big fan of this website would like to go along updated.
March 9th, 2011 at 12:17 am
Resources these as the one you mentioned here will be extremely helpful to myself! I will publish a hyperlink to this web page on my individual blog. I’m certain my site visitors will find that very useful.
March 9th, 2011 at 4:13 pm
I’m not sure where you are getting your information, but great topic. I needs to spend some time learning much more or understanding more. Thanks for excellent information I was looking for this information for my mission.
March 10th, 2011 at 4:13 pm
Ahoi, your review here surely got me interested up to the end, so I just had to comment on it. Luckily I located it via the Lycos Search and I must say to you I usually never read the complete column of a blog since I often get tired of the “gossip” which is offered to me on a regular basis. In contrast your story got me hooked from the beginning to the very end. Really remarkable these days in the blogging world (in my opinion). To sum up: thanks a lot and please please keep up the good work. I’ll surely come back and look for new stories! Ciou
March 11th, 2011 at 3:48 am
Spot on with this write-up, I really suppose this website needs far more consideration. I’ll most likely be again to read much more, thanks for that info.
March 13th, 2011 at 10:02 am
Do you write all of this content by yourself or do you now have some kind of software program which gets this content from somewhere?
March 15th, 2011 at 8:32 pm
Hello there, just became alert to your blog through Google, and found that it is really informative. I am gonna watch out for brussels. I’ll be grateful if you continue this in future. A lot of people will be benefited from your writing. Cheers!
March 18th, 2011 at 3:34 pm
It’s really a great and useful piece of info. I am glad that you shared this helpful info with us. Please keep us informed like this. Thanks for sharing.
May 28th, 2011 at 9:34 pm
You actually make it seem so easy with your presentation but I find this topic to be actually something that I think I would never understand. It seems too complicated and extremely broad for me. I’m looking forward for your next post, I will try to get the hang of it!
September 10th, 2011 at 3:34 pm
I needed to compose you this tiny observation just to give thanks as before with the pretty strategies you have contributed above. It is really wonderfully open-handed of people like you to deliver easily just what most of us could have marketed as an ebook to earn some cash for themselves, notably seeing that you could possibly have done it if you considered necessary. The solutions in addition served to become a good way to fully grasp most people have the same interest just as mine to find out much more with reference to this problem. I am sure there are many more enjoyable opportunities ahead for individuals who look into your blog post.
September 10th, 2011 at 9:28 pm
I just wanted to post a simple comment in order to say thanks to you for those amazing ideas you are giving out at this site. My prolonged internet research has now been honored with professional details to talk about with my two friends. I ‘d express that many of us readers actually are definitely lucky to dwell in a notable place with so many special individuals with useful techniques. I feel rather blessed to have seen your site and look forward to plenty of more awesome minutes reading here. Thanks a lot again for everything.