Conditional Bank Loan vs. Wholesaling

3 Replies

Had a question that I hoping that someone may have the answer to.  We currently have a house under contract, a potential buyer contacted us and said that they may use a loan.  To my understanding most banks won't deal with assignment contracts so since the property is owned free and clear we were thinking of creating a contract with the motivated seller to do a quick deed in our name ( with the understanding that the seller will still get what was stipulated originally) so that way a traditional bank loan would work. Has anyone done this before?  Thanks.

Originally posted by @Andre Elston :

Had a question that I hoping that someone may have the answer to.  We currently have a house under contract, a potential buyer contacted us and said that they may use a loan.  To my understanding most banks won't deal with assignment contracts so since the property is owned free and clear we were thinking of creating a contract with the motivated seller to do a quick deed in our name ( with the understanding that the seller will still get what was stipulated originally) so that way a traditional bank loan would work. Has anyone done this before?  Thanks.

Ok, so you have a cashbuyer and you are trying to wholesale a property. Your cashbuyer decides to get a loan instead of paying cash, right? Now you want the seller to quitclaim deed the house to you and then ______ < that's where I get lost. 

If the buyer is getting a loan, so what. Have the buyer tell the bank to make the check out to cash and you do a double closing.

Have you decided to change strategies from wholesaling to subject to or wraparound mortgage here? I'm not sure that I understand what you're trying to do.

Kudos,

Mary

The end buyer can likely get financing, based on the purchase contract price with the seller, but they have to pay your fee out of pocket with additional cash.

there is no existing mortgage on the home so the subject to or wrap around is not an option.  Basically trying to see how we can fit an assignment contract within a traditional bank loan that's why i mentioned the quick claim to us