Can I buy Wholesale with Financing?

4 Replies

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

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? 

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