Bu... Bu... Bu... But! What About The Closing?

O.K. Here's where your skills as a transaction engineer will pay off for you in a big way. Let's say you've done everything you're suppose to do. Found a motivated seller... reached an agreement to purchase the property... put it under Contract to Purchase... located a Wholesale Buyer... struck a deal... and now your ready to close. What to do? This is where working with a knowledgeable Closing Attorney or Escrow Company is essential. But, I'm getting ahead of myself.

Let's look at your options first.

Option #1: You could assign your contract to your wholesale buyer and let them close. Cash money and they step into your shoes. In theory this sounds good. But, you are giving up a certain degree of control. Not my first choice... but a viable alternative.

Option #2: You could close on your contract and at some point in the future... close with your wholesale buyer. This requires the ability to close. But, if you don't have the resources available to close this becomes an impossibility.

Option #3: You could close the purchase and sale simultaneously. There are several methods of doing this. You can close with the Seller then with the Buyer. Two closing statements... two deeds. You could reverse this process and close with the Buyer first. You could have the Seller deed the property directly to your Buyer thus staying out of the chain of title completely... and have two closing statements... one from the Seller to you... and one from you to the Buyer. You could have everybody sitting at the same table... or you could separate the parties by time and/or space.

I like option #3 because it doesn't require me to have the ability to close. I don't have to tap into my resources for financing. And why should I. It's a waste of everybody's time since the Buyer is going to have to arrange financing anyway. I also like the direct deeding approach. There is absolutely no need for you to be in the chain of title. It can only lead to liability problems, and it simply isn't necessary.

Insure your success by using a Closing Attorney or Escrow Agent who can get the job done with the least amount of problems.