Found a way to wholesale to retail conventional buyer...we just closed!
I want to begin by saying that I do not recommend just ANYONE doing this, and my story is based in Florida and what we are able to do here....with that said, here's how our deal went down.
I was contacted by a seller who wanted to get rid of his house and not deal with Realtors, staging, showings, repairs, etc. I went into contract with him just a little over what I would normally pay. I pitched it to my fellow investors, but numbers did not work for them and we did not want to purchase the house ourselves, our initial plan was an assignment.
As time passed we decided this house needed to be listed on the MLS to get a retail buyer. We spoke with the seller about having him list it to get exposure to retail buyers, and if a buyer showed up then our contract would still prevail, and we would just assign our contract over to the buyer, but we would deal with everything. He agreed and signed listing agreement.
Within a few hours of the house being listed we had our first showing and got an offer in the very next day, which we accepted. Problem was the buyer was conventional, so now we needed to figure out how to go about this since we had never done this before. We spoke with the Realtor that represents the buyer and lucky for us, he understands what we do. After going back and forth with different people about what our best option was (submitting an invoice to be paid at closing, signing an option with seller and recording it, etc) we decided that the best and only sure way this deal could happen was if we recorded an "Affidavit and Notice of Interest in Real Property" (which states we have a contract on the property) and put the buyer and seller in contract directly. We consulted with various underwriters and all said they would call for a release if this came up in a title search. So, we had the buyer and seller go into contract. At this point the seller knew what the sale price on the contract was.
During the title search our Affidavit came up, they asked us for a release, which we gave in exchange for...our wholesale fee. Buyer was happy to get a deal, seller got what we agreed on, and now we know how to wholesale to a conventional buyer.
