Investor · IN · Member since 2021 · 39 posts · 19 votes
I wholesale real estate, I was looking to see if it's possible that I can make an offer of say $280,000, and then I come to find that the property needs ~$25,000 in repairs, so I fully disclose in the contract that that $25,000 would be credited back to the buyer at the closing table, but the purchase price still be $280,000. I think that I can, but I'm sure there's some wizards here who know I either can or cannot.
Them paying cash eliminates the big roadblock I saw. (The lender saying no.) Now you can simply ask a local title company if you’re in a title state or a lawyer if you’re in a lawyer state. Should be less than a 5 minute call.
I THINK there’s zero chance you could get the money. There might be a 10% chance an escrow company could hold the money for 1 or 2 big repairs until a licensed and bonded company submitted bills for the repairs to be reimbursed and the extra returned to the seller. (Like a roof or ac repair would be my example.) maybe a lender will chime in to see if even something like that could be done. I would bet they wouldn’t be excited about it.
I THINK there’s zero chance you could get the money. There might be a 10% chance an escrow company could hold the money for 1 or 2 big repairs until a licensed and bonded company submitted bills for the repairs to be reimbursed and the extra returned to the seller. (Like a roof or ac repair would be my example.) maybe a lender will chime in to see if even something like that could be done. I would bet they wouldn’t be excited about it.
I'm not trying to get the money, I'm trying to get the buyer (who is me on the contract, until I assign it) the $25k. I think it's possible because Opendoor does it, they just don't assign contracts.
Here's what I'm envisioning:
Purchase price $280,000
Buyer is to be credited $xxxxx at close from the purchase price
Then the buyer would come in, pay $280,000 cash, and then get $25,000 credited back to them. My assignment fee would be separate
Them paying cash eliminates the big roadblock I saw. (The lender saying no.) Now you can simply ask a local title company if you’re in a title state or a lawyer if you’re in a lawyer state. Should be less than a 5 minute call.