Process of Wholesaling to a Conventional Loan Buyer

[James Buari]

Hey BP, 

Hope all is well. I am currently in the process of locking in a deal for a home where the end buyer is using a conventional loan. I'll be using transactional funding to complete this deal and will be doing a double closing, but am unsure how this process will work with the title company. Do I lock the end-buyer into an Assignment Agreement or do I use another purchase and sales agreement? How do title companies distribute funds in a double closing? Please advise. 

Thanks, 

[Chris Mason]

Hi @James Buari,

This can work. I've done it, my first was with an all BP team, in fact. 

You will need to actually take ownership of the property for 2-3 weeks. @Shari Peterson can help you with that part. 

You need to figure out if the premium you are getting by selling to someone paying close to full retail (made possible because they can do 95% LTV on a conventional 30 year mortgage) is enough to cover your carrying costs and still come out ahead relative to wholesaling it to an all cash, hard money, etc, end-buyer that is only willing to pay a steeply discounted price.