Wholesaling to Non-investors

2 Replies

G'day, BiggerPockets, 

I'm looking for a little advice about wholesaling specifically as it pertains to buyers who are non-investors. I've identified a property in foreclosure that I'm willing to offer $150K cash for; however, I expect it to present some difficultly when trying to resell to an investor. The property is worth $200K+ as-is, but it's in a market that I'm unfamiliar with, and I do not feel confident that I'll find another investor, let alone a secondary cash buyer to assign the contract to. I anticipate this deal being a double close, having holding costs, and likely sold again by conventional financing. I should mention that I'm not a real estate agent, so I would seek out an agent to sell the property for me. 

Interesting question. I'm guessing you are anticipating "difficulty trying to resell to an investor" because there's not enough money in the deal for a flipper to be interested? Either that, or you don't have a buyer list or network of seasoned connections? 

I highly recommend finding an agent who has investor experience him/herself AND recent experience working with both investor and retail buyers. Most realtors know very little about investing, have never heard of wholesaling and won't get what you're trying to do. So do your due diligence to find the right agent who has done investor deals (not just says "I work with investors") and has a list of investor clients who pick up the phone when the agent calls. The right agent knows the local market, knows how to market this for you to both retail and investor clients and does enough business to understand all the options in structuring a deal that makes sense for all parties.


If you are planning on a double close to a non investor owner occupant, you will have challenges with their financing. In a double closing, the end buyer must put their funds into escrow with the title company first, and then the transactional funding company sends in their money for you to close. A conventional lender many times is not comfortable with this arrangement. A smaller local bank or credit union would be more likely to fund under these circumstances. FYI, an FHA loan requires that the home has been owned by the seller for 90 days, meaning you couldn't sell it to your buyer until day 91.

In addition, if it is an REO, the asset manager will have established which title company they will close with. Many times that title company will not allow a double closing.

These things being said, it is a super hot market and many properties are getting multiple cash offers by owner occupants. This of course eliminates the financing obstacle. If you can convince the REO asset manager to move to the title company of your choice, then you could still double close. I'd recommend that you offer to pay whatever title costs the asset manager has incurred thus far when they ran title on the property.