Wholesaling to a buyer using a 203k

[Mathew Gunkel]

Are there any wholesalers out there who've dealt with buyers using a 203k loan?  Was it excessively difficult or time consuming?

[Aaron Mazzrillo]

You can go over the mountain, around the mountain, or use the tunnel right through middle of the mountain to get your check on the other side. Which do you choose?

I don't wholesale to anyone who doesn't have cash in the bank or a hard money lender lined up who can close within 10 days or less. Any other buyer presents way too many obstacles to get to my check on the other side of the mountain and there's nothing like the smell of an easily obtained, fresh escrow check in the morning.

What you might be able to do is find a wholesaler willing to close on the deal and then sell it to you at a slightly higher price to warrant the cost of closing and holding while you obtain your loan. I personally would never do this with someone I didn't already have an established relationship with. I might, just maybe, do it on a deal I am thinking of rehabbing and if someone in this position made me an offer to buy it in xx number of days, but again, we have my holding costs accumulating with I'm not able to start any rehab hoping your loan goes through. These aren't situations I want to put my business in.

Another option is.. an option. I've tied up property on options, then sold them to even retail buyers and had my optionor agree to sell directly to my retail buyer with me being paid on the HUD as a 'title claim' fee. A lender will typically not have a problem with that and I've sold to FHA buyers in this matter before.