Wholesale Deal Options

[Brandon Kingcaid]

Hello everyone! I am doing research for my first RE purchase and have identified a wholesaler to provide me with deal options. All of the deal options offered require cash or hard money. I have also located a couple partners to fund these deals.

I had an idea about how to use an FHA 203k for renovating an existing home or use an FHA OTC to purchase land and build a new home. Has anyone ever heard of having a friend buy property/land from a wholesaler and sit on it for as long as it takes to secure an FHA loan, then buy the property/land from said friend for a house hack as soon as the Loan can be processed? Sure a little bit of $ gets wasted on interest but you end up with a great deal and only 3.5% down on the whole project.

[Lydia R.]

@Brandon Kingcaid That makes more sense! Again it seems like if you need quick cash to close on the deal the structure a loan with your friend who has the cash (since they have obviously committed to putting up the money anyway) do the rehab and then just refinance and pay off loan with your friend, I would think you could get pretty good terms from a friend and also provide them a good enough return that would incentivize them to fund more of your deals. Everyone wins and its much less complex.