If the borrower is well behaved, I'll board loan with FCI or another 3rd party servicer using the ABS platform with online and ACH capability.

The 1003 loan application used for all residential 1-4 unit properties asks the basic question "In the past 3 years have you been a party to any foreclosure or given any deed in lieu of foreclosure?"

I employ a 3rd party management company to manage my units.

How you wrote the contract and your state law may place other requirements for disclosure to the other (selling) party and/or public notice (recording), which an attorney may be able to help you with.Once you "sell" the contract, you obligation is transferred and it is no longer your contract.

Problem #2: The Ex-PM I would look at the contract and make my decision of how to proceed based on two things: 1) whether I think the PM even has the money to give me if forced to and 2) whether my contract allows the prevailing party to recoup legal and/or collections fees in case of a suit.

However i've picked up several nicer properties and have 6-8 parties per property willing to pay application fees to try and get a chance at the property.

Whatever the case regarding choice of word and definition of that, a key distinction about the activity of wholesaling is that I am selling my position to a third-party.. its not about doing it for the benefit of third-party.

So the next challenge when you are a third party is doing anything with the Mortgagee since it is not your account.

Giving work to your contractor or a listing referral helps all parties involved.

Mainly, as the buyer, there shouldn't be an acquisition cost difference to you using them or a 3rd party agent.