Getting financing to whosale a deal?

[Dana Jo]

What are the first steps I need to take to find financing for my first real estate wholesaling deal? I have no money for a down payment and my credit is not the good. Can someone help?

[Matt Devincenzo]

Welcome to BP Dana! Usually in a wholesale transaction no one is getting financing.

If you are the one locking the property up and wholesaling it to a buyer, you don't need financing because your buyer is the one providing the cash to close.

If you are the buyer, you need to have cash/hard money to buy the property. This is because usually there are 2 reasons that a wholesaler is able to get a property under contract for such a great price., First is they have to sell fast, this means they don't have time to waste on getting bank financing. Second the property has deferred maintenance and this means that a bank won't lend on it because they don't lend on homes that need substantial repairs.