All Forum Posts by: Everett Schulte

Hi, thanks for reading,

So I started wholesaling about a year and a half ago and done a few deals, and I’ve decided to move to the art of flipping. I am so excited because this is the reason why I started wholesaling in the first place.

So, as a first step, I’m getting all my finances in order, and beginning to shop for lenders. My questions are:

What to look for in a lender? What is the most common way of acquiring a loan for say $75,000-$100,000 for the purchase of a house. (We are looking to rehab then sell quickly)

I will also be needing to borrow for rehabbing up to $50,000, and so what are the common options regarding this?

What to look for in a lender in light of what our budget is? I read that a business line of credit is good, but can be hard to get if you’re a new business (which we’re completely new and do not have an llc.

Anything I should watch out for or tread carefully with? Please let me know.

Now, of course, any savvy agent will have buyers looking for investment properties (Flippers and Landlords), and these agents will be glad to be cut into the deal. 

BUT, lets assume that you get a house under purchase agreement, and it's a turn key property. No repairs, no rehab necessary... You just happened to get the house below market value with a spread. You post on zillow, CL, etc. and an agent reaches out to you with an interested buyer. The consensus being that you need a buyer able to fund the deal with all cash, and it seems that landlords out there would be interested, but none of them bite. Instead, you have Mr. Smith, under advisement of his agent, who totally wants to buy your new property, and the agent makes an offer. You speak with the agent, and the buyer doesn't have full cash to fund the deal immediately. Mr. Smith also has no line of credit to pull from. What type of financing options are out there for Mr. Smith to buy this property, if any?

I can imagine the floodgates opening for many wholesalers (and everyone involved) to work with agents and their average Joes and Mr. Smiths who aren't investors. That's only if the deal is possible to close!!

@Tamara Deering

@Greg Dickerson

Maybe it's like Tamara mentioned, where something like this could fall under the category of a line of credit, and a refinance after close!

Well it figures! The market is crazy good, and competitive. :D I'm trying to wrap my mind around how an average Joe would want to fund the deal with cash though.   

When you speak of Realtors as a good source to find buyers, are you speaking strictly investors/landlords connections, or do some agents also help sell this to your “average Joes” who are looking to move in long term? This is still assuming that the type of property is a no repairs, kind of turn key.

@Greg Dickerson

Right on! 👍🏻

Thanks. 🙂

@Tamara Deering

Thank you for the insight! Most appreciated! I never considered the refi after closing. Swift!

Hey BP! Newer member here,

I’ve been wholesaling for about a year and a half, and love the business. Recently, I’ve been looking into some different strategies about WHO I want to target as my end buyer/assignee. Normally, I’ve been acquiring houses that need about 20-60k in repairs, and selling them to flippers who have no problem paying with cash. It’s worked out well, but wanting to do more deals, I’m trying to widen my scope. For instance, a lot of homes I come across that don’t need repair, I can get at a good discount, so there’s some spread there, but it’s not good for your average fix and flip investor. So then, who else? Perhaps a landlord type would be interested to purchase this house that is in great condition at a discounted price... When it comes to closing time though, the way I know how to close is to assign the buyer to pay full cash.

So my real question is, 1: is there a demographic of LANDLORD types that will pay all cash to fund the deal, and 2: if not, are there options out there to fund the deal without full cash from the assignee? Looking for all types of possibilities!

Thanks for reading, and I hope to hear from some of you moguls out there!! 😁