Buying First Property From Wholesaler

[Jon Lallande]

Hi BP,

I’ve finally found what I think is a great first investment property. My only concern is that I’m buying the property from a wholesaler. I’ve purchased a house before so I’m somewhat familiar with buying a home but I have no experience at all with wholesalers.

I’m looking for someone who has experience buying from wholesalers to have a conversation with. I’ve plugged in all the numbers conservatively and I’m looking at a 16-17 percent cap rate and 12-13 percent cash on cash return.

My offer has been accepted by the seller and I have the assignment contract now. I’m willing to discuss all the details about the property and I am open to partner on the deal if anyone is interested.

Thanks!

[Nick C.]

You have an assignment contract between you and the wholesaler? Do you also have the original contract between the seller and the wholesaler? If not, you will definitely want that to know what terms you're purchasing. 

When you say you've plugged the numbers, are these your numbers or the wholesalers numbers? Definitely use your own.