Wholesaling Off Market Properties To Retail Buyers

[Kevin Powell]

Hello BP. I understand you can wholesale a property to retail buyers with traditional financing in place. Question is, how do you get your assignment once down payment and qualified amount is done? Example

property a purchase price: $250,000

Qualified amount for mortgage: $300,000

Downpayment: $15,000

Can i collect $35,000 as an assignment since it all equals out to be the total they qualified for? How is it done with title?

[Wayne Brooks]

@Kevin Powell No.....just because their income qualifies them for a $285k loan, doesn’t mean they can borrow $285k on a $250-$285k house...with 5% down the house would have to appraise for $300k And their Actual purchase price would have to be $300k....this is basic stuff.

It will be Very hard to wholesale to a financed buyer Unless they can pay your assignment fee in addition to their down payment and closing costs, in cash.  Your assignment fee can not be financed and double close typically will not fly.