wholesaling

7 Replies

Is it difficult to close a wholesale deal when the new buyer is using a loan and how do i handle a situation like that? please help!

Well, if you are putting a home under contract with a seller and you are not actually on title, you truly need a cash buyer.  You will run into problems if your end buyer wants to do bank financing.  Your only looking for cash buyers. 

Medium buymemphisnow stacksCurt Davis, Buy Memphis Now | [email protected] | 605‑310‑7929 | http://www.BuyMemphisNow.com | TN Agent # 00321765

Thanks, greatly appreciated...

Originally posted by @Curt Davis:

Well, if you are putting a home under contract with a seller and you are not actually on title, you truly need a cash buyer.  You will run into problems if your end buyer wants to do bank financing.  Your only looking for cash buyers. 

 Curtis, you bring up an very interesting point.  I often wondered how to handle a deal where the end buyer has acquired bank financing.  What type of problems can occur if you have a home under contract and the buyer wants to finance the deal?  Are you able to receive a finders fee or keep your standard commissions?  More so, is the act of selling property using an "assigned to" clause violation of local or state laws?  

I think if you are really wanting to sell the property to a seller who doesn't have the cash amount your only option is really to buy the property yourself then sell it to the home owner. Otherwise if you don't have a buyer's list you could try calling some of the local investment clubs in your area. If you are advertising the property on CL. Make sure you put on there that it is a cash sale or investor property something of that nature. 

Medium head icon colorRyan Dossey, Call Porter | http://Callporter.com | IN Agent # RB15001099

I agree with Ryan D. maybe if you find a cash buyer to work as a sort of middleman you may get a smaller commission but would be able to do the deal more cleanly. 

Hi,

Wholesaling to cash buyers is the most ideal situation.  

Cash Buyer 

- Can close quickly to meet what ever close date you have on your contract.

- Does not require a Survey Ordered

- Does not require an appraisal (just another thing to combat, if comes back low & usually does)

- Any Condition is Ok, does not have to meet any FHA guidelines etc.

Bank Financing

- 45 Days to close

- Multiple reasons why a buyer will not get approved for a loan

- Funding can be pulled a day before closing

- Requires an Appraisal/ Survey

- Has to be in move in condition, with no structural problems

- Getting paid will be a pain if you do not have a Real Estate License and can receive a commission

- And/Or Assigns may not work for most bank financing. Some require seasoning of title if properties has changed hands multiple times quickly.

- & its a big cluster ....

I hope this helped

Leon

Most buyers will be using a loan to buy the property.  These are usually rehab loans.  If the buyer has the money then there is vary little to worry about.  Do you want to know more about wholesaling and finding deals? Let me know.

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