Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Wholesaling
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 11 years ago on . Most recent reply

User Stats

316
Posts
102
Votes
Dave Savage
  • Investor
  • Rochester, NY
102
Votes |
316
Posts

Wholesaling to a Retail Buyer

Dave Savage
  • Investor
  • Rochester, NY
Posted

I have a good handle on wholesaling distressed properties to cash buyers. Right now though I am getting a number of leads of retail ready properties at 90% of Retail pricing for a strong multi-family market in Rochester, NY. I also have realtors with owner occupied buyers who are looking for these types of turn-key properties but their buyers need to get a traditional loan.

This results in two questions:

1. Can I wholesale a property to a retail buyer that needs to get a traditional loan? Not sure if a bank would look at an assignment contract as acceptable for writing the loan.

2. How should I compensate the real estate agent, as in NY they can not get a referral fee or commission if it isn't a listed property (I have heard)

Is there a way that others are doing these types of deals?

Most Popular Reply

User Stats

758
Posts
251
Votes
Ted Akers
  • Centennial, CO
251
Votes |
758
Posts
Ted Akers
  • Centennial, CO
Replied

A conventional mortgage lender for your end buyer will not fund on a contract being assigned. They would require you to be in title and for that sale contract to be between you and the end buyer. You would need hard money, private capital, or transactional funding. These are workable but expensive and a challenge to fund for transactional funders because the funding amount is noticeably higher than a hard money loan (less equity cushion). Transactional funders need to shift that risk by requiring you to have the end buyer very financially committed to the deal (higher than typical non-refundable earnest money in the 5-10% range depending on the specific deal) and no remaining contract contingencies at the time we would fund your purchase.

Loading replies...