Co-Wholesaling works! $5K for bringing in a buyer and being a liason

Tammy are you going to closing today or is this a done deal? I hope it goes well.

Steve.

question...why does the SELLER have a fee of 16k? a seller getting a fee, for what?

This is the absolute fastest way to cash in my opinion. The first deal I had I did this day. Pretty simple. I had a property and another wholesaler brought in a buyer. He even took care of all the title work and running around while I sat next to my pool on my laptop.

Congratulations! Keep after it. If you bring a buyer for any one of our properties on our website we'll split the assignment fee with you!

Own Your Situation,
Ben

This deal, as you know, was a short sale. When they added the buyer, my buyer changed who they wanted to buy the property with (has many different companies) because of the liability purposes. I can't really explain it, but his lawyer explained that if his company is on title with another company, and that company is sued, or goes bankrupt, because they owned it together technically for a brief time, his company could become in trouble. SOO.. we had to put in a second revision. This caused it to fall out of escrow and once it fell out we tried to put the offer back in under the name he wanted to use.

My buyer insisted on using his own services and because the bank was working on this over 2 years, they did not want to switch services, and my buyer insisted on it. That is what lost the deal. Even though he countered saying he could use his own services and would close in 24 hours and pay all the escrow and title fees.

The wholesaler who had this under contract must not have had their EMD in that the bank could just cancel the contract. I wonder if I'll ever know... But that wholesaler is po'd because my buyer changed their mind on the company to use and now he's lost his deal completely. So, there are drawbacks to co wholesaling. He's saying he had another buyer now and went with mine. I don't know if I'll ever know the whole story behind it. I am going to try to make it up to him by bringing in another buyer for another one of his deals, but I can't believe this one fell through. ALL the money was already in escrow.

I do have one of my own properties under contract now though. A sweet REO in Burbank. Going to do my first 100% wholesale deal shortly.

Sorry, I mispoke there. The WHOLESALER, not the seller.

I may have this wrong and maybe there was a seasoning issue but why did you not just do a double close? Your seller/wholesaler closes on the short sale himself using transactional funds(a to b) and then sells it to your buyer (the b to c) in whatever name your buyer wants to take it in? You and the seller/fellow wholesaler make your fee? Sounds like it was needlessly complex.

Michael Mangham
MD Home Acquisitions LLC

You will get the next one.

I will see you next week in AZ.

Steve.

It was a BofA shortsale in CA... they will not allow a title change for 30 days, so we needed to add the buyer before closing. Kooky CA...

I think all of this trouble in the end coulda been avoided, had you or the buyer told the banks title co. you would like to "courtesy close" at the buyer's title company. That probably would have fixed it, and the buyer woulda been happy because he could still use his title co. to close deals. But, on to the next deal!

oh ok, I got ya. The wholesaler is greedy and doesn't know what s/he is doing. S/he is supposed to pay you from his/her assignment fee, you are not to add on another one.

No, we tried that approach too. I'm not sure if you define courtesy close the same, but because it was a BofA short sale, and they had been working on it for 2 years, they weren't about to change the escrow company for anything. We tried to get the end buyer to do a sub escrow but he did not want to do that.

How would you have worded the 'courtesy close'? I may use this with the current short sale I'm pursuing in Malibu. (I'm the one going under contract with the seller ) but if you know secrets about short sales with BofA, please let me know!