Wholesaling a Wholesale

Does it work to wholesale another investors deal to an end buyer as long as there’s still “meat on the bone”? Would this be possible to assign or double close and allow both myself as well as the seller/investor to get paid?

Sorry if this is a dumb question.

If you are selling to an end-buyer (ie, a person going to live there) then you’re not wholesaling, even if you sell it for less than market value. If you’re trying to sell it to a retail/rehab investor, then while it’s still possible if there is, as you say, “meat on the bone.”

However, I seriously doubt that there would be any real profit on the deal once the true numbers are laid out.

Raj

Hi Alex,

I think you’re asking about wholesaling a wholesale deal…let me confirm.

Say Silent Bob has a property under contract for $20k and is assigning it to you for $5k. Then you find another investor (Jay) willing to pay $30k for the property. Let’s say the property is worth $75k and needs $10k of work.

For Jay, the end investor, he’s all in $40k, so it’s still a good deal.

If you were going to assign the deal, essentially you’d pay Silent Bob $5k to own the contract. If you were going to make $5k on it, you’d assign the contract to Jay for $10k (thereby reimbursing yourself the $5k you paid Silent Bob and making a profit of $5k). You’d want this to be a cash or hard money transaction…conventional lenders will not dig it.

I’m working it in my head and I don’t see an easy (clean) way to do a double close on it. Another option would be to close the deal, then re-sell it (wholesale flip).

Hope that helps.

Is there any possible way to do a double close?? That’s what I was planning on doing.