Advice for dealing with wholesalers

[Jorge Caceres]

Hello BP Community,

I am considering my first off-market deal through a wholesaler. The property value is definitely a good deal, and the house checks out. The wholesaler has picked a title company but is willing to use my own as long as they are able to deal with an assignment of contract. I am requesting this for my protection and to ensure the title is legitimate.

What else should I be aware of in a transaction like this to avoid any problems?

Thank you in advance for your answers!

[Ken M.]

Quote from @Jorge Caceres:

Quote from @James McGovern:

What assurance do you have that the current residents will depart at closing?

Part of the deal is that the tenants will stay and their deposit will be transferred to me. I usually screen my own tenants, so I'm asking for more information about them (FICO, employment history, etc.) and am planning on meeting them.

It sounds as though it is a rental vs personal home. That is good for you, it should have fewer legal problems if you have to evict.

A tenant will tell you everything that is wrong with the house. If they are happy, they will stay. I usually get proof of last 12 payments made on time, from the seller. I don't particularly worry about bad credit if they pay on time. In most jurisdictions you can do a quick check to see if an eviction has ever been filed against them. That to me is a bigger issue.

I'd inspect the big ticket items to be sure I new what I was buying, sewer, roof, heat/AC and so on. You can call the local police and see if any police have been dispatched to the address. I'd drive by after dark and see what kind of neigborhood it is at night.