Will a Wholesaler sell to me if I use conventional financing?

[Zack Carlson]

Hello, 

I'm in the market for some rental properties and I'm hoping that a wholesaler will have a property that will be suitable so I can get a better price. 

I'll be using traditional financing for my first few, will a wholesaler still sell to me in general or are they cash only buyers? I'll be prequalified, but they'll have to wait the underwriting time.

[Ryland Taniguchi]

The problem with buying from a wholesaler is that no lender (even portfolio lenders) will lend on an assignment contract. The wholesaler is likely not licensed to sell real estate for the seller and so the assignment contract may be the only way that they can legally sell the contract (versus the property for the seller).

As a licensed broker, I have done it where we renegotiated out of our contract with the seller and sold to a buyer with traditional financing simply as an agent. In other words, I just got paid an agent commission versus a wholesale fee.