Do I need credit to wholesale?

Question

Just a simple question, do I need credit (good, bad, or at all) to wholesale houses? None of my family members and/or peers seem to believe that you don't need it.

Bryan Barry · Answer

In this case I am mostly dealing in real estate that is for sale by owner who is fine with getting paid in cash, I have heard from a few people (some in my own state/area) that it is not required to have a real estate license to assign contracts to cash buyers.

Roland Paicely · Answer

A simple answer to a simple question..............No, you don't need credit to wholesale houses.

Charlie MacPherson · Answer

@Bryan Barry  If you intend to assign a contract, you most likely need a real estate license that is attached to a brokerage.

If the seller has a sharp agent, they'll vet you before signing the contract - just like I do when I represent a seller.

I always contact the lender to be certain that they've pulled tax returns, W2s, pay stubs, bank statements, etc.  There are still bogus pre-approvals out there and I'm not taking my client's home off the market unless I'm sure you can pay for it.

And as @John Thedford said, putting a property under contract without both the ability and intent to close on the sale can result in a lawsuit for "Fraud in the Inducement"

http://legal-dictionary.thefreedictionary.com/frau...

Bryan Barry · Answer

Isn't there a clause in most contracts that states if you can't finance the purchase the contract is null and void, and I am free of obligation?

John Thedford · Answer

No. You don't need credit you need CASH if you are holding yourself out as a cash buyer. If you don't have cash and you are representing yourself as a cash buyer this is called FRAUD BY INDUCEMENT.

Do I need credit to wholesale?

Most Popular Reply