First Wholesale with Owner Financing

[Jamie B]

I'm currently looking at wholesaling a 3Bed/1Bath with an ARV of around $200k. A buyer who is interested would like to purchase using owner financing, something I have not worked with before.

My question is:
As a wholesaler, where do I fit in with this deal and what are my responsibilities?

Do I simply negotiate the purchase price with the seller and then assign it to my buyer for a fee or do I also help to negotiate the terms of owner financing?

Thanks in advance for any help.

[Jerry Puckett]

There are just too many variables to answer your question adequately. But your job as a wholesaler is to negotiate the best deal possible for your buyer, then assign (or close) the deal. If you're merely bird dogging, then simply connect buyer and seller and and let them work out their own math.

If your buyer is looking to flip the property, he'll want the seller to hold the note while he does his fix up and sell. What could you possibly offer the seller to entice him to assume the risk?

If your buyer is a buy and hold type, you'll want to negotiate such that the principle and interest on the note you'll create is such that it allows the property to cashflow, or your buyer will lose interest.

There are many other scenarios..... I would suggest spending time studying up on the subject before venturing out. Take this lead and offer it up to an investor or wholesaler that can walk you through it. Small price to pay for the education.