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