Updated over 8 years ago on . Most recent reply
Can I buy Wholesale with Financing?
Good morning everyone,
Quick question as I am still new in the real estate world.
Can I buy wholesale deals with financing and keep the cash for rehab?
I read the forums and it seems to be possible, but most the details I found are for the seller.
For me as a buyer, what do I need to do to get an approved financing for a wholesale deal?
Thank you
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Jon Holdman
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
Maybe. There are a couple of hurdles with financing a wholesale deal.
One is that, if you're double closing, you're buying from someone who doesn't own the property. The lender will do a title search and discover this.
If you're doing an assignment, the lender may exclude the assignment fee from the "value" for determining LTV. This can happen with a double close, too.
Be up front with the lender about what you're doing to avoid last minute surprises.