Rental Property Investor · Honolulu, HI · Member since 2020 · 8 posts · 5 votes
I am looking for my next property in the greater Raleigh area. I am looking for single family under 250k and finding the MLS to still be pretty limited. If I am purchasing with conventional financing, is working with a wholesaler an option? I know that the financing would increase the closing time frame and limit the level of distress of the house, but do financed purchases from a wholesaler ever happen? Thanks in advanced for any input! All of my deals thus far have been MLS deals so I am looking to expand to increase deal flow/opportunities.
Any wholesaler I know makes cash offers and then puts in the contract "and/or assignee" which means they either they will pay cash, or the investor they flip the deal to will pay cash.
At the end of the day the seller isn't going to care if you use cash, hard money, or conventional financing as long as they get paid on time. But if you have a wholesaler assign you a deal and your lender cannot close on time, you will risk losing your earnest deposit unless you can come up with the cash.
@Sanders Rohs if you can make the wholesaler confident that your lender will close and not make things too complicated, then the wholesaler can work to amend the contract (if seller agrees) to allow for debt and a timeframe that the lender can close within.