First Wholesale Deal - Questions

[Tanya Lee]

Hi All,

I'm working on my first wholesale deal. It's for a property in Baltimore. ARV is $160K and approximately $25k-35K in repairs needed. It's in the 21229 zip, Rognet Heights. The deal is for $35,500. The tax records show that the owner is Deutsch Bank National Trust. I responded to an ad on Craig's List and am negotiating with that person. How can I verify who the owner is? Could the tax records be outdated?

Any help/guidance would be great.

Thanks,

Tanya

[Ned Carey]

Originally posted by @Tanya Lee:

Thanks! @Ross Schneider 

Would it be prudent to ask for some kind of proof of ownership?

I would simply ask if they are wholesaling the deal. I wouldn't be that concerned because the title company will make sure the proper owner is selling. I would not give the deposit too the seller, I would give it to the title company. 

If they are wholesaling (assigning their contract to you), I would ask to see the contract. When you take an assignment of contract you are not buying a property. You are buying a contract for a property. You should know what terms are in that contract.

If they are wholesaling the deal they may choose to double close which means they actually buy it and then resell it to you.

A good wholesaler shouldn't be afraid to tell you the real story.

Is it your goal to wholesale this to someone else?  If so it is particularly important to know the full story and how the deal will be structured.