The Wholesale Process - In or Outside of Escrow?b

[kkim]

Hey yall

Here are some things that are preventing me from wholesaling properties left and right..

1.  Finding sellers who want to sell for much less than market value
2.  LEGIT forms that spell out all the terms of a wholesale transaction
3.  RUMOR SAYS that lenders will NOT APPROVE of hefty "assignment fees" when disclosed in a Hud-1...and alternatively I am not willing to do anything outside of escrow as that is fraudelent

Help!

Kevin

[Lamar]

Who told you that it's fraudulent to do anything outside of closing. It's perfectly legal to get paid an assignment fee upfront, as far as I know and many Investors I deal with do the same. Please site your source. Oh wait....you did say it was a rumor right?

In regards to finding sellers, look for those that are having a problem. Divorce, foreclosure, death in the family, job transfer, etc. and that are motivated to sell fast!! If you can solve their problem, depending on their motivation they'll be willing to give you the discount you need...in most cases.

Also, try having them find you as well. It's better when they're the ones calling you for help!

What type of Forms are you looking for? I don't know of any Form that spells out a wholesale transaction per say. It all comes down to how the contract is written, but I doubt it will say.....THIS IS A WHOLESALE TRANSACTION...etc..etc

[e123low]

How does one handle collecting an assignment fee outside of closing? What commonly takes place here? Does the buyer hand over a check or are you opening up escrow?

Thanks

[Betty12]

Try listening to Vena Jones Cox, if you take a look in the free books and audios section you'll find her there.  She will give a good overview of what wholesale is with alot of detail

[phatman5]

Has anyone actually had a lender turn down a loan because of a hefty assignment fee? I wouldn't think a HML would turn it down, as far as LTV is met and credit is good.