How to buy from wholesaler

Question

I got 2 cash deals from wholesalers. The only way I can make them work is by terms not price.

How can I buy a property from a wholesaler who offers a cash deal when I want to change the deal?

I'm still new and learning. One property owner owns a rental property free and clear. Wholesaler says he's old and wants to cash out on all his investments. It's not a good cash deal. Wholesaler tells me ARV is 350K and they are asking 300K.

I'd be interested in seller finance and since he's old offer a 3, 5, 10 year balloon and then cash him out.

Rehab and owner finance to a buyer and then have buyer cash me out at the agreed time.

Nick C. · Answer

So he's offering a "wholesale" deal at around 85% of the ARV? That's pretty bad, but most wholesalers would have just advertised the property as a 450k ARV, at least he's not trying to hide the fact that it isn't a good deal.

Why not ask the wholesaler if the seller is willing to sell on terms and he can collect a fee from the seller. The only other option would be to cut him out and go directly to the seller, I would never do it, but are people really buying at 85% in your area? My guess is the wholesaler will not be able to find a buyer, but inventory is pretty tight these days so who knows...

Chris Frydenlund · Answer

@Nick Colamarino: Thank you so much for the quick response. They know it's not a good flip deal, so they offer it as a buy and hold. I offered terms, but they denied. They agreed with seller that buyer pays all closing costs. I think that may be the issue if my offer requires them to get paid by seller. I wouldn't mind if they increase the down payment to cover their fee.