Hi BP world! I recently found a property from a wholesaler from another forum. The property is in NC. I've bought many property from MLS and agents so this is very new to me. He asks for LOI to get the conversation started which I think it's pretty standard? I'm wondering from start to finish what are the steps?How does everyone usually fund the deal besides cash or hard money? Is loan a viable option? Any comments and help are very appreciated, Thanks!
@Jack Yen The process is relatively similar to buying off the MLS but with fewer steps. You are going to go look at the property and make an offer. If wholesaler accepts your offer they are going to either bring you an assignment agreement or another contract (which means double closing.) make sure you give the earnest money to the title company not directly to the wholesaler. Make sure you read the contract, and if its an assignment get a copy of the contract being assigned so you know what terms you are agreeing to. Also make sure that your earnest money can be refunded IF the wholesaler/seller cannot deliver clear title. After that you just show up on closing day and bring the funds to close
@Jack Yen Typically wholesale deals are closed with cash or hard money. Most of the properties wouldnt qualify for traditional financing and also most sellers dont want to wait the amount of time it takes for you to get a loan. I would suggest using hard money to fund your purchase then refi with bank loan after you own the property.
@Lydia T.Thank you for your response. It makes complete sense. It's about time for me to try something new, too. All my properties at this point are from MLS but I've always thinking about working on off-market deals. Time to BRRRR ! :)
Hi folks, just want to update I got something under-contract with a local wholesaler. We are closing in couple of weeks. Thank you all for your comments and input. It's been very helpful.