Investor · Clearwater, FL · Member since 2015 · 10 posts · 1 vote
Hello BP - I have a quick question I still have in regards REOs wholesaling. I keep seeing a few guys around my area (Tampa) that wholesale MLS properties. I have access to MLS so when I pull up the property I see they have it "pending", and they usually the price they wholesale it for is 5k to 15k less than listing price.
Im not interested in wholesaling MLS properties, but my questions are:
How do they do that?
Do they put it in contract and they hope to find a buyer?
What happens if theres no buyer? the contract expires and they lose their earnest money?
Finally, how they show proof of funds when they put an offer to this type of properties?
Thank you - I just want to understand the whole concept.
Agent / Investor · Clearwater, FL · Member since 2014 · 573 posts · 281 votes
10y
Do they put it in contract and they hope to find a buyer? Yes, this is typically what they do. They try like crazy to find a buyer before their inspection period expires.
What happens if theres no buyer? the contract expires and they lose their earnest money? They cancel the contract before the inspection period so they can get their money back with no loss.
Finally, how they show proof of funds when they put an offer to this type of properties? Could have their own funds, could have a friend/partner willing to provide POF to help them get the property under contract.