Can I buy from a wholesaler without all cash?

10 Replies

Newbie here. Sorry for naive question. Is it ever possible to buy from a wholesaler without all-cash?  I'm in L.A. looking to buy in the $500k range.  I have about $250k of my own money to work with, but would need to finance some portion  I realize I'm not going to beat out all-cash offers, but looking for my first project, and am ok if I don't hit a home run first time out.  Thanks in advance for advice!

Hi Andrew. Yes it is possible but make sure you line it up ahead of time. You need to find a local lender that does investment mortgages. You could use a hard money lender too but since you already have a cache of cash you'll get a better deal at a bank. I wholesaled my first deal to a friend of mine that didn't have all cash. I new he already had a relationship with a local investor friendly bank lined up. It only took him 10 days to close. Talk to a some of the local REI members or an investor friendly Realtor in your area to find out who these lenders are. They can be hard to find but well worth it. Good luck.


Thanks so much for the reply (and sorry for my delayed reply). Good to know that it's not out of realm of possibility!

Great job saving up $250k @Andrew Robbins  ! Not many of us have done that.  I'm trying to get past the idea of sinking $250k of my own money into a single house. Oh, and them still having to get a mortgage. Sticker shock, I guess.  Have you considered buying out of area?  I just can't imagine! 


You can absolutely buy wholesale deals in the LA market with 250k. Depending on where you are comfortable investing you can probably do 2 deals with that amount of money. We have many lenders here that will go up to 70% of the after repair value which means less out of your pocket. This is because there are so many lenders here trying to compete for your business. Good luck!!

As a wholesaler I don't even allow hard money anymore. Takes too long. Cash only. Besides any other type of loan would not like the assignment contract or double closing anyway.

@John Horner  I don't get it. You being the Wholesaler (with an assignable or double-closable Contract already in your pocket), why would you care where your end Buyer got their money from, as long as they could show proof-of-funds? Cheers...

Originally posted by @Brent Coombs :

@John Horner I don't get it. You being the Wholesaler (with an assignable or double-closable Contract already in your pocket), why would you care where your end Buyer got their money from, as long as they could show proof-of-funds? Cheers...

First, if they are financing, how would they have proof of funds?  Just because a lender pre-approves someone doesn't mean anything is guaranteed.  

Second, I don't care where they get their funds, I care WHEN they get their funds.  Hard Money and conventional in my area take at least 25 days to close, the last deal I did with the buyer using Hard Money took 6 weeks.  Plus they always need extra inspections, approvals, etc.  These are things that a wholesaling dealing with motivated seller usually does not have time for.

@John Horner Aah, now I see where you are coming from (and probably why the OP asked this question in the first place). Nevertheless, I would hate to be looking for motivated Sellers of Real Estate @ say 70% FMV in areas where even the princely sum of $250k cash couldn't buy any (and/or where Lenders couldn't readily be found to fund just 50% of the sale price, but where the actual loan proportion of the value was less than 30%)!...

Updated over 3 years ago

When I said "Lenders", I mean ones that should be trusted by Wholesalers like you, given the OP's kick start...

Thanks Brett and John for responding.  John -- welcome to the way things are in L.A. :)  Brett, thanks for your insight.  I was curious though if you have heard of other wholesalers who aren't so insistent on all cash OR is there ever a situation that exists that you have a property that you are having a hard time unloading, and if someone like myself were making an offer -- that you wouldn't consider it.  I know I'd probably have to get the "sloppy seconds" for this first deal just to get some experience under my belt.


Just an idea.   If you haven't already picked up the phone and called Sam I encourage you to.  The chances are about zero that he hasn't financed some wholesale deals  in your area.  He can connect you to a wholesaler that will be comfortable letting him finance a deal that you want to purchase.  O.K.  So you probably already figured this out on your own.  Cheers and good night. 

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