Can you owner finance a wholesale contract brought to you?

[Brandon Ellison]

Hey everyone just looking for fast response. I had a good deal come across my desk but it is a wholesale contract, can you accept the contract and like turn it around to a owner finance contract or no?

[Will Fraser]

Hi @Brandon Ellison!  This is a clever idea!  I understand the scenario you are proposing to be this:  wholesaler X brings you a deal.  You want to finance this to Buyer Y using a normal owner finance type setup.  Is that right?

If so, then you'll need some way to "cash out" the seller, which is where the person buying the wholesale deal comes in.  You buy the deal from wholesaler X, who gets their assignment fee and the balance goes to the seller.

Once you own the property, though, you are welcome to do anything with it that the laws allow.  You may even be able to find a creative way to owner finance the property to buyer Y, use their down payment to pay the wholesaler a fee, and then pass along some of the monthly cashflow to the original seller.  That would be an owner-finance pyramid and a bit of a quagmire, but certainly creative.

Good luck in the journey!