All Forum Posts by: Scott Tucker

Thank you Michael, Wayne and Lydia for the responses.  I was expecting this to be the conclusion but wanted to see whether I was missing something.  

I have the opportunity to purchase a property from a wholesaler who won the property at Auction.  The wholesaler wants to assign the contract before the auction date closes.  Because this property has a decent amount of built in equity and the court allows financing of the property, I am looking into alternative ways of structuring the deal instead of the straight pay the wholesale fee and then put a separate down payment on the property.  One thought is to structure the deal so that the wholesale fee is effectively considered part of the purchase price and therefore can be included in the amount financed?  I would expect to pay the wholesaler a slightly higher fee for the delay in payment.  Based on my calculations this approach, even with the higher wholesaler fee, would decrease the amount of cash I need to put into the deal up front.

 My question is, has anyone tried this or a similar approach? If so, how did you structure it so that the lender viewed it as single transaction? 

Thank you @Megan Greathouse and @Jason Goretzki for the suggestions.  These are very helpful.

I just took the leap on my first two investment properties, one in St. Louis, MO and one in Akron, OH.  I have started researching Landlord insurance providers but before I made a jump, does anyone have any recommendations for Insurance brokers in these markets or an insurance company that may cover both markets?  Thanks for any input.