Realty411 Magazine A Spotlight on Charles and Lena Sells

Another advantage to co wholesaling is that it opens your customer base to include more opportunities. Often times, wholesaling is where investors meet and connect to collaboratively purchase a property through a real estate investment trust (REIT). Working together can work wonders! Investment properties such as this are often large commercial buildings that significantly impact the community. Subject To Sales Subject to real estate transactions are the best option for those with no or bad credit. This agreement is between the seller and the wholesaler or investor. No down payments are made or credit checks performed, as the buyer ends up simply assuming the mortgage. There are a few things to be aware of before entering into these types of deals. In the mortgage contract, the lender has the right to call the note due at any time, in full. Speaking with the bank before the transaction is a good idea to know where you stand going in. Rarely does happen, as the lenders are simply happy that the loan is getting paid. This is a great example of why wholesalers are always looking for distressed properties. Homeowners have many reasons for needing to relinquish responsibility of their property. Wholesalers make the trans ition easy, as they already come with a list of buyers, the seller does not have to go through the hassle of listing and showing, and the sale usually happens quickly. Seller Financing Another great option that does 39 not require money down or credit checks is when the seller will provide the financing. How this works is usually that the seller keeps the property in their name and the buyer simply pays the seller instead of the bank. There is also usually an option for the buyer to make the purchase once they are in the position to make the down payment or get a mortgage of their own. Sellers like these kinds of sales because they have a steady stream of monthly income from the payments. Transacti onal Funding Here is where those relationships that you have been building are going to come into play. Bank loan officers are a necessity to wholesalers and their relationship should be as important as the buyers and sellers. A great example of when transactional funding will come in handy are bank owned and short sale properties. These properties often sell at bargain prices and a substantial profit can be made. Unfortunately, these sellers do not allow assignment of the contract or double closings, and do require cash at the end of the deal.

Realty411 Magazine A Spotlight on Charles and Lena Sells | Page 39