Hello everybody. I am trying to figure out the best way to legally receive money from a deal I'm trying to work. I am NOT a licensed realtor. This is a wholesale deal and I was obviously looking for a cash buyer. A gentlemen called me and asked me if my seller would consider terms. The deal is... I have this property under contract for 10k, I am asking 12,500. The interested buyer wants to put 1,000 down and pay $250 a month for 3 and 1/2 years. His math is wrong and that would actually be 2,000 down. I planned to just assign this contract and make the spread, but I am confused as to how I can legally receive the funds for putting this together if it's accepted by the seller that I have the contract from. I have wholesaled several deals but I've never dealt with terms and financing if that's the right way to put it. Any advice would be greatly appreciated.
I imagine someone has to come up with cash in the deal to make the purchase, correct? So if your buyer is not coming up with the cash, that leaves you. You would need to purchase the property and sell it to your buyer on terms as a flip rather than a wholesale deal. Owner financing is not difficult if your buyer is a business entity. If they are not a buying through an entity you would need to go through an RMLO to originate the loan. Personally I think the best answer to this to keep looking for another buyer. If you end up financing it, you might consider changing the terms to include some interest rather than extending credit at 0%.
Thanks for taking the time to respond to my questions. Yes you were correct, and the advice you gave is greatly appreciated. I have another buyer lined up so we'll see how it goes. Thanks again.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.