Potential owner finance deal

[Zachary Olley]

I have found a 65 year old selling his portfolio and the wholesaler said his last multi family was an owner finance deal and is open to doing it for a triplex that's is fully rented out. Advice on how to give the wholesaler a cut and how to structure the deal for the seller? Other rentals he owns are SFR that are up for sale too.

[Erik W.]

You most likely have to give the wholesaler his fee up front (i.e. like a down payment) unless you can negotiate with him to take installments.  Most wholesalers I know are so starved for cash they want money in hand now.  That said, if his wholesale contract with the Seller is set to expire in a few days, he probably has no agency agreement protection for having introduced you to the property like a Realtor would have.  So if he fails to sell it he gets nothing and loses whatever earnest money he gave the Seller.  Installments might look tempting to him if he's about to lose the entire deal + cash out of pocket and you are his last option to sell and close the deal on time.  You can give him a 2nd deed of trust/mortgage on the property in the amount of his fee, to be released upon payoff.