Well, they are related but not the same.
Wholesaling is when you put a contract on a property and sell your position on that contract to another buyer. In order to sell your position you can choose to assign it or double close. When you assign, you collect a fee(usually between 3,000-10,000) and your buyer closes with the seller in your place. With a double close, you close with the seller first and then close with the buyer second(usually within hours of eachother) and you still collect the same fee.
Does that make sense?[ Edited by results_one on Date 01/31/2004 ]
Yes, that makes sense. So by assigning a property I am wholesaling, but if I am wholesaling I am not necessarily assigning.
So the obvious next question. When would I want to assign vs double closing? What are the advantages and disadvantages of each?
If you do a double close you will have to pay closing costs if you assign the contract you don't. You can do either one. I usually double close if the profit is high and do not want the owner to know what the investor is paying for the property. Could cost you the deal if their is a big difference. If the difference is less than 10000.00 the owner usually will not have a problem.
So what is the procedure required to double close? Do I pay the closing cost on the two deals?? That is two separate clsing cos?
Also, If I charge an assignment fee of more than 10K, and assign the property contract to the assignee, what does it matter to the seller if he still gets the money he asked for?
Of the two processes (assigning and wholesaling), which one would you recommend to an inexperienced beginning investor?
Well, they are related but not the same.
Wholesaling is when you put a contract on a property and sell your position on that contract to another buyer. In order to sell your position you can choose to assign it or double close. When you assign, you collect a fee(usually between 3,000-10,000) and your buyer closes with the seller in your place. With a double close, you close with the seller first and then close with the buyer second(usually within hours of eachother) and you still collect the same fee.
Does that make sense?[ Edited by results_one on Date 01/31/2004 ]
Yes, that makes sense. So by assigning a property I am wholesaling, but if I am wholesaling I am not necessarily assigning.
So the obvious next question. When would I want to assign vs double closing? What are the advantages and disadvantages of each?
If you do a double close you will have to pay closing costs if you assign the contract you don't. You can do either one. I usually double close if the profit is high and do not want the owner to know what the investor is paying for the property. Could cost you the deal if their is a big difference. If the difference is less than 10000.00 the owner usually will not have a problem.
Nathan
So what is the procedure required to double close? Do I pay the closing cost on the two deals?? That is two separate clsing cos?
Also, If I charge an assignment fee of more than 10K, and assign the property contract to the assignee, what does it matter to the seller if he still gets the money he asked for?
Of the two processes (assigning and wholesaling), which one would you recommend to an inexperienced beginning investor?