First time buying from Wholesaler

[Mike Stahlman]

Hello, we are buying a house from a wholesaler double close. This is the first time for us to do this from a wholesaler. They want a fast close 16 days. We're cash buyers and I have evaluated the house. Everything looks good. This is our third deal. Others were through realtor. I want to know what I need to do to protect us. I think we should order a title search. Anything else? I'm ok with no inspections and they said the house passed the city inspections for occupancy. Thanks for any advice.

[Mike Stahlman]

That was a long time ago for us.  It should have been our second rental.  I not sure I would recommend Faster Houses, Please do not get me wrong, they are great personable folks.  The deal went through without a hitch but this was the only house we purchased from them, and at the time there had just been an ordinance in the city that made the house un-rent-able.  That is our fault for not doing the due diligence.  (with wholesalers where they have a short close window, that is usually the case) We finally sold the house (long story) and it is the only house we lost money on so far.  Only $500 but still no profit and lots of time was invested there.  A lesson learned.

As far as Faster House Buyers Club and Faster Deals, they are super nice people, but I have not really found any "Deals" for us.  Most of the houses have not worked for us numbers wise, and we have looked at several.  That is not to say they do not provide plenty of good options but they have always been too close for our numbers to work since we do not participate in the rehab but pay for it through our trusted Contractors.

We now have 7 profitable Cash Flowing rental homes and and have flipped 3.  We have learned a lot along the way.  I learned that using a title company does protect you with title insurance and the double close worked fine.  That just was not what we should have been worried about.  The deal with Whole sellers is, they work so fast there is not enough time to do great evaluations.  You either know what a property is worth and what it will sell / rent for and how much it will take to fix it with contingencies or you should be very careful dealing with them.  Also beware of them financing the deals.  The money is very expensive and all the risk is on you. 

Hope that helps.