The second contract involves you selling to the buyer (the B- to-C transaction); the second transaction typically pays for the first, which means you don’t have to put any of your own money into purchasing the property. Because the attorney already has the money for the B-to-C transaction, it’s clear that the A-to-B transaction will happen, so the B-to-C typically takes place first. Neither party will know your profit, so this is the best option if you’d rather keep that private. However, there’s a downside — in some states, you’ll have to pay closing costs both when you buy it and sell it, so your total profit might be lower. In this case, it is typically beneficial to have the end buyer pay all closing costs. Your contract should state " Buyer will pay all closing costs". Don't worry, it may sound difficult, but this is typical in a wholesale deal. There are a few important points to keep in mind with both types of transactions. First, if you’re a real estate agent, depending on the state laws, you may not be able to assign the contract because you’re cutting out the broker. If you’re not an agent, you can put the deal together yourself and then hire an agent to do the work. The agent’s commission should be written into the contract. Using an agent/broker in wholesale is not recommended as it muddies up the waters and cuts into the end buyers' profit. As for double closings, investors need to be careful. Depending on the mechanics, it might be that the investor is essentially doing what an agent would do, which could be viewed as illegal if the investor isn’t a licensed agent. It’s important that you’re clear on the laws of your state and that you consult with a licensed professional, if necessary. Remember this rule of thumb. A real estate transaction is when an agent receives compensation to connect a buyer to a seller or
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