Wholesaling to a conventional buyer

[Michael Campbell]

hey everyone

Any thoughts on what might be the pros and cons of wholesaling to a buyer who would be purchasing through a conventional loan. The house I'm considering is worth about 80k and I have an accepted offer at 43k with maybe 5k in cosmetic work to be done. Would I be able to assign the contract to such a buyer? The seller has said that a 60 day escrow would be ok, so maybe that would cover any time constraints that loan stuff would cause.

Any advise would be appreciated

[Jon Holdman]

Their lender will almost never use your end price. The buyer will have to pay your assignment fee in cash (on the HUD, though) and then the lender will use your contact price as the starting value for the loan.

If you're trying for the $80K you should buy it yourself, fix it up then sell it to them. Even then you may have a tough time with such a large spread.