Buying multifamily from whole sellers ?

[Albert D.]

Anyone ever bought small multifamily (10-30 units) from whole sellers? I ran across couple of deals lately with great cash on cash returns, well, at least on paper. But deals are offered by whole sellers who will assign contract to buyer at close. I'm not quite comfortable with such setup as it creates additional layer of complexity in the deal and I'm not familiar with whole sale deals. Maybe they are ok and legit deals but wanted to see if anybody ever had any experience in such dealings. Any comments / stories are welcome.

[Micki M.]

@Albert D. Buying from a wholesaler can be a great deal. They've done the legwork to find the property and get it under contract saving you time, effort, and competition if you're in a hot market. Not all wholesalers know their numbers and some pump them up so know who you're buying from. As far as assigning the contract it doesn't have to complicate things, once the assignment is made it's you and the seller. Do the same due diligence you would with a direct sale or an MLS listing and bring in any help you need (agent, title company, legal) and get yourself a property.