Buying wholesale homes

2 Replies

I have found buying a wholesale property could be a good option. I need some guidance. How does the process work buying from a wholesaler? I have the hard money in line. Once we settle on the deal. Do I need to use a real estate agent? Also, I have a way to do all the inspections needed on the house, but regarding documents. How do I do the due diligence on the title and other legal documents? Do I need insurance while I rehab? What about the HOA?

I basically need some help or outline on how to buy from a wholesale.

Thank you

You do not need to use a real estate agent. The wholesaler is simply assigning a contract to you and then you are now buying based on the contract they have in place as if it were a FSBO but you also have to pay the assignment fee to the wholesaler. By the way, the assignment fee to the wholesaler should be at closing. I would only in very, very rare circumstances pay the wholesaler before the property has closed.

I would never, yes, never pay the wholesaler prior to closing, under any circumstances, even if the wholesaler is your Mother.

No agent needed but you had better know your way around the purchase and sales agreement as well as any assignment agreement. Additionally, a wholesaler assigning the contract to you is only way of many, many ways a wholesale transaction could be transacted. 

Protect yourself, make sure you visit the property and fully inspect it, with a professional if you are not one, make sure the entire transaction goes through a licensed and insured escrow company, get a title policy from a title company and run checks on the escrow (or attorney) as well as the title company. There are many fraudulent transactions going on in this industry so be sure you know 100% for sure all is on the up and up.