Another Wholesale Deal Done – House #23

PA020015We just closed all of the paperwork on House #23 on Thursday.  The buyer is a local business man who buys properties for cash.  He buys only in good areas and rents them out.

At the end of the day we gave him a good deal and he used his funds to close my escrow and I gave him a notarized copy of the grant deed and he paid me the finder’s fee.  The buyer was found through a wholesaler friend of mine’s friend.  So three of us are sharing the finder’s fee.  But that’s okay.

This is now my favorite way to close escrow on wholesale deals.  No transactional funding required, no use of my own funds.  This definitely requires a little bit of trust between both parties, but I would never risk my reputation over one deal.

This deal was found straight out of the MLS with an agent I have never worked with before.  So now we have an “in,” with another REO office now which is good.  He sends a high end gift basket to the buyer for every escrow he closes which was a nice touch.

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3 Responses to “ Another Wholesale Deal Done – House #23 ”

  1. Hey, Steve – awesome for you on the latest wholesaling flip? Question…

    “…he used his funds to close my escrow and I gave him a notarized copy of the grant deed and he paid me the finder’s fee……This is now my favorite way to close escrow on wholesale deals.”

    I’m not familiar with a grant deed, so I’m not quite following you here. Maybe it’s something that varies by state or something, but would you mind please explaining this process a little better? I’m intrigued. I’ve only ever done a simultaneous closing, double closing or contract assignment.

    Thanks,

    …jp
    .-= jp moses | REI Tips´s last blog ..Painfully Honest and Epic Mobile Home Commercial =-.

  2. Steve says:

    Basically, the end buyer closes my escrow with his funds. I then give him a Grant Deed (like giving him the pink slip to a car) and he records the deed. Only works with cash buyers, where they trust you to give them title to the property.

    In this case he’s having a title insurance company record the deed for him and using a title insurance binder to make sure he has ownership.

  3. Real estate is great. I love how there are tons of way to do every deal. Awesome for you on the latest closing.

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