Meeting a wholesaler

[Juan Carlos Castillo]

Questions for wholesalers,

I'm looking at buying my first property from a wholesaler and asked her if she would like to meet up and discuss seeing as it's my first property and I have lots of questions.

She immediately said no thanks and I thought that was kind of wierd? Should I head for the hills or is it normal to not want to meet up with a client because you're too busy? This is raising some red flags.

I also looked into her company and it was just formed last year so more flags are going up. Also when going into a wholesale deal can you purchase the property through a typical conventional loan/lender or does it have to be hard money/cash?

Thanks,

[Barry Pekin]

@Juan Carlos Castillo,

I don't think it is a red flag by itself, but I would follow your gut.

This wholesaler may be protecting her time, or maybe she's new and uncertain, or any number of things.

I would make sure she has the property under contract and is making it clear that she's selling the contract and not the property.  If she's marketing properties that she doesn't even have under contract, then she's doing it all wrong and I would side with John on this one.  (Rare, indeed!)

At least ask her your questions.  Tell her what you want.  If she's willing to work with you, then she's possibly worth working with.

As for a source of funds, investors typically are working with cash, an LoC, or an HML. Conventional loans are often very slow and subject to the bank's criteria. For example (as I understand it), banks typically won't finance properties that need a lot of repairs. If someone approached me and said they were using conventional financing, I probably wouldn't work with them. But, I'd explain why and what alternatives they should pursue.