wholesale to bank financed buyer?

Question

I might be asking the obvious here, but can you wholesale a property to someone who is financing through the bank? If it's under contract to be sold to me and I write in the contract "and/or assigns to" and assign to a buyer who is using finance will that work?

Appreciate your help.

Thanks,

Adam

Appreciate your help.

Thanks,

Adam

Kyle J. · Answer

You can’t really say you’ll “close quick” if your end buyer needs to obtain bank financing.  The closing will be the same, if not slower, than other financed offers.

The other thing to consider is that whatever wholesale fee you charge isn’t really part of the purchase price. Rather, it’s a fee you’re charging on top of the purchase price. That’s an important distinction because your end buyer’s bank likely won’t include that fee in the loan, which means your end buyer will have to come out of pocket to pay it. Make sure they know that and are okay with it.

Chris Purcell · Answer

I don’t think a lender would put a wholesale fee on the HUD.

Tom Gimer · Answer

It really depends on the structure of the deal and the policies of the bank financing the transaction.

In your deal, it sounds like you would be assigning your contract to the end user for a fee. So the question would be will the buyer's bank allow an assignment fee on the CD/Settlement Statement? If not, how would you get paid?

There's actually a lot more to consider here but that should be a starting point for you.

John Thedford · Answer

generally a bank will not allow that sort of transaction with an unlicensed broker as a middleman

Christopher Brainard · Answer

Bank financing means a slow close...

-Christopher

Adam Garza · Answer

I'm assuming not much other than the fact that I may have a buyer lined up and could close quickly.