Wholesaling when it comes to real estate is done two ways either by assignment or by double close. Typically if the property only will allow a small profit and still be attractive to other investors, then it is done on an assignment. In this case the person that has a contract on the property assigns the contract to the buyer and never holds title on the property. Most people say that if you are making more that say $5000 then it is better to do a double close as in that way the investor that is buying the property from you does not know how much you are making.
I say that is irrelevant. The reason is that the investor should be looking at one thing and one thing only. That is if the property at this price something that I will be able to make a profit on that I am satisfied with making. In other words is it a good deal. If it is a good deal, then why should it matter how good a deal it was for the person that got the contract in the first place? As I said it is irrelevant if I make $2,000 or $50,000 on the deal, as long as it is a good deal for you as an investor.
That is why I only do assignments when I am wholesaling properties. Less work for me, less work for the title company, and I am better able to do it without having to come into the city to be at the close. I prefer to set at home and wait for the check to arrive or the wire transfer to go directly to my bank account. That way I have more time to find more deals and to make more offers, thereby having more deals that I can wholesale.