Feature:

Navigating the Closing Process as a Real Estate Wholesaler

Closing a wholesale real estate deal is where your hustle pays off—but it’s also where precision matters most. As a wholesaler, you’re the linchpin connecting the seller, the cash buyer, and the title company. Here’s a step-by-step outline of the closing process from your perspective, ensuring everyone stays on the same page.

Step 1: Secure the Contract with the Seller

• Your Role: Lock in a purchase agreement with the motivated seller at a below-market price. This contract (often called the “A-to-B contract”) gives you equitable interest in the property.

• Key Actions:

  • Verify the seller’s ownership and property details (e.g., liens, taxes) using public records or a preliminary title report.

  • Negotiate clear terms, including a realistic closing timeline (typically 30-45 days) and a low earnest money deposit (e.g., $10-$500) to minimize your risk.

  • Include a contingency clause allowing you to assign the contract to a cash buyer.

• Title Company Involvement: Send the signed purchase agreement to the title company immediately to open escrow. Provide them with the seller’s contact info and any known property details.

Pro Tip: I often negotiate to pay my earnest money deposit after the end of the due diligence period, giving me time to line up my buyer.

Step 2: Market the Deal to Cash Buyers

• Your Role: Find a cash buyer (the “B-to-C” part of the deal) willing to purchase the property at a higher price, securing your assignment fee or double-close profit.

• Key Actions:

  • Market the property to your pre-built buyer’s list via email or text blasts. Highlight key selling points (e.g., ARV, repair costs, neighborhood comps).

  • Share a detailed deal package with photos, repair estimates, and comparable sales to attract serious buyers.

  • Negotiate an assignment fee (typically $5,000-$20,000) or, for larger margins, prepare for a double closing.

• Title Company Involvement: Inform the title company you’ll be assigning the contract or doing a double closing. Provide them with the cash buyer’s info once identified.

Pro Tip: Vet your cash buyers upfront—confirm their funds or proof of financing to avoid delays at closing.

Step 3: Execute the Assignment or Double Closing

• Assignment Option:

  • Draft an assignment agreement that transfers your equitable interest to the cash buyer for the agreed-upon fee.

  • Send the assignment agreement to the title company, along with the original purchase agreement.

  • Ensure the cash buyer deposits funds (including your assignment fee) into escrow.

• Double Closing Option:

  • Arrange two closings: one where you purchase from the seller (A-to-B) and another where you sell to the cash buyer (B-to-C).

  • Coordinate with the title company to schedule both closings, often back-to-back on the same day.

  • Use the cash buyer’s funds to cover your purchase from the seller, with your profit as the difference.

• Title Company Involvement: Keep the title company in the loop on whether it’s an assignment or double closing. They’ll handle title searches, clear any liens, and prepare closing documents (e.g., HUD-1 settlement statement).

Pro Tip: For double closings, work with a transactional lender if you need short-term funding to cover the A-to-B purchase. Many title companies can facilitate using the buyer’s funds directly.

Step 4: Coordinate Closing Day

• Your Role: Ensure all parties are aligned for a smooth closing.

• Key Actions:

  • Confirm with the seller that they’re ready to sign closing documents (in-person or remotely via notary).

  • Verify with the cash buyer that their funds are in escrow and they’re prepared to close.

  • Check with the title company that the title is clear and all documents are ready (e.g., deed, closing statement).

• Title Company Involvement: The title company manages the transfer of funds, records the deed, and disburses payments (including your assignment fee or profit).

Pro Tip: Follow up with the seller and buyer post-closing to maintain relationships for future deals. A quick thank-you call can lead to referrals!

Step 5: Collect Your Fee and Follow Up

• Once the deal closes, the title company disburses your assignment fee or double-close profit.

• Review the closing statement to ensure accuracy.

• Document the deal for your records, including profit, timeline, and lessons learned.

Stat of the Week: 78% of successful wholesalers close at least one deal within their first 90 days by focusing on clear communication with all parties (Source: 2025 Real Estate Investor Survey).

Hustle Hack:

Streamline Your Closing Checklist

Use a CRM to track each deal’s progress. Create a closing checklist template that includes:

• Signed purchase agreement

• Cash buyer commitment

• Title company contact and escrow status

• Closing date and document deadlines

Quick Tip: Save time by using e-signature tools like DocuSign for contracts and assignments.

Reader Q&A

Q: How do I avoid title issues derailing my deal?
—James

A: Partner with a reputable title company early in the process. Request a preliminary title report before marketing the deal to identify liens or ownership disputes. If issues arise, work with the title company to resolve them before closing, and keep your cash buyer informed to maintain trust.

Submit your questions to [email protected] for a chance to be featured!

Hustle Spotlight

A Closing Win

Want to close a $15,000 assignment deal? Mastering communication.

If you ever feel like everyone in the deal is disjointed consider using a group chat with the seller, cash buyer, and title company to keep everyone updated, avoiding last-minute hiccups. The secret? Provide a detailed closing timeline shared with all parties a week in advance.

Takeaway: Proactive coordination prevents chaos. Use shared tools like Google Docs or Trello to track progress.

What’s Next

In our next Issue, we’ll dive into finding motivated sellers using online tools. Plus, we’ll share scripts for negotiating with cash buyers to maximize your fees. Don’t miss it!

Share The Wholesale Hustle with your friends.

Until next time, keep up the hustle!
Chris Strickland, The Wholesale Hustle