I'm looking at wholesale deals to flip and I'm just curious as to what things i should look out for when buying from a wholesaler? I understand that running my own numbers is a must but what else should i look out for?
Lender · Chicago, IL · Member since 2010 · 149 posts · 127 votes
6y
Buying from a wholesaler is like buying from a direct owner. You have to be careful of the purchase price, rehab amount and ARV. You need to be even more conservative with a wholesaler because you know they are taking equity out of the deal and you want to make sure the numbers work.
Additionally, if the property needs rehab, there are many programs that limit how much the wholesaler is making and it may hinder financing.
But as you said, the most important thing is for the project meets your minimum numbers.