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.
99.9% of all off-market/wholesale deals are done with either cash or hard/private money only. Very difficult to get a loan for a wholesale deal depending on the condition.
Thank you guys !
In my case, being upfront with the lender would work, but I had to pay the wholesaler fees cash to be able to have the contract with the original home owner.
@Ibrahim Alanqar Typically you won't be able to get a traditional loan from a bank. You will need to use hard money or a private lender.
Obviously each hard money lender is different, but a common loan structure: they will loan you part of the purchase price and loan 100% of rehab. You will need to come up with the down payment (lenders want you to have skin in the game). Will you be able to put some money upfront?
Join the Largest Real Estate Investing Community
Basic membership is free, forever.