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Step five — close and get paid

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The simplest and cleanest method to do this is to collect your entire assignment fee up front as an earnest money deposit from your buyer. After giving your buyer time to inspect the property and complete their due diligence (usually this is completed within 30 days), the earnest deposit becomes non-refundable.

If your assignment fee is larger, then get a portion of this up front as the earnest money deposit. (We’ve seen wholesalers with deals where they are making $100,000 to $200,000 or more.) Get as much as you can up front when you assign the deal and then collect the balance after your buyer’s due diligence period with you expires. While you might have to wait until closing to get all of your fee, the sooner you’re paid the less likely it is that someone’s going to try to trim your wholesaling fee down at the closing.

Commercial Real Estate Investing For Dummies

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