First purchase through wholesaler

[Garvin Yu]

We are about to jump on our first transaction via a wholesaler. It's a 3 family in a local city, $85k purchase and $60-$70k rehab, paying in cash then refinancing with a 30y mortgage. Should value somewhere around $240k or so after renovations. The wholesaler is a fellow firefighter (my full time job), so I do trust him in that he's not screwing me. I've done due diligence, the property is indeed a 3 family and the rent comps vs purchase is profitable. 

I recently got my realtor license, so I'm somewhat familiar with the procedure of purchasing properties through MLS, but this being a private transaction it makes me a little nervous.

What is the typical procedure of purchasing from a wholesaler, what should we watch out for, and what should we do to protect ourselves in the transaction? We are purchasing with an LLC and usng lawyers.

Thanks for any guidance you can provide!

[Account Closed]

The exact same procedure you go through with any property, even the MLS. Get contract with seller, close to get ownership on property. If you feel the seller (your friend) might not go through with the deal then you can file a NOTICE OF CONTRACT which is a one page document that is filed with the Recorder of Deeds that states you have a contract to buy the property, but don't put on it how much you are paying, just the parties involved.