Can I buy Wholesale with Financing?

[Ibrahim Alanqar]

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

[Jon Holdman]

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.