Okay, you know I love coaching in addition to my investing work. I love helping people achieve success in this industry.
So, I want to share some helpful info that came from a call I had with one of my students.
This student had just wholesaled a deal. (Yay!) But she was complaining about the contract she had used. (Boo!)
See, she was upset because she ended up having to unexpectedly pay $2,600 in closing costs. 🙂
A bummer for sure.
Here’s what happened: She wanted to assign the contract to an end-buyer, but the title company told her no, which meant she had to pay those closing costs.
This is what I think happened… when I reviewed the contract and the deal, I noticed that the contract had been assigned a few times, not just once. I’m thinking, the title agent was just super frustrated with all of that—with so many parties involved, it was a difficult transaction.
So, the title agent was probably dunzo with all the shenanigans and was laying down the law—she was going to do things her way to be done with the deal. Sucks, of course, but the deal still got done.
And… here are the lessons we can take away from this deal…
The Biggie: Make sure that whatever contracts you are using are crystal clear about who pays the closing costs. That means, in your assignment agreement, you might want to add language like this:
I, “Your Name,” am assigning this contract to “Mr./Mrs. Investor”
and “Mr./Mrs. Investor” is going to pay all the closing costs.
I, “Your Name,” am not paying any closing costs.
Simple and straightforward.
Here’s another takeaway… this student told me that although there had been lots of parties involved, she felt fine throughout this deal—because she had 3(!) more buyers lined up and ready to go.
Isn’t that great! How was that possible? She had a solid buyers list. That’s how.
And that’s exactly what I teach: create your buyers list first.
Okay, I’ve saved the best for last… my student made $65,000 from this deal! Yeah, you read all the zeros right. So while it sucked to pay the $2,600 in closing costs, she still made bank!
This just goes to show you that wholesaling with great profits is alive and well.
And there you have it…
Bottom line: Make sure your contracts are worded to protect you.
Now go do some deals!
