Hello, I wanted to start to setup buyers that are preapproved to buy real estate homes. I have heard that normal convetional loans will not allow for assignments in the deal.
How do wholesale companies work there deals with buyers that they have pre approved to buy homes? Thanks for the advice!
Jose Valdes
I have a list of people that want to invest in real estate, I want to get them preapproved for a loan. I have been told that many mortgage companies will not approve a loan with an assignment fee. How can you get the assignment fee worked into a deal? Thanks for your time and assitance!
Jose Valdes
okay my opinion is just based on what i’ve heard, as i’m not a wholesaler.
it’s my understanding that a wholesaler gets a property under contract, then assigns it to an investor, who then sells retail. the investor is an all cash buyer, thus, no problem with assignability on the mortgage, since there isn’t a mortgage.
you want to sell to retail buyers, i’m not sure that’s something that wholesalers do per se. again, i could be wrong, but if it were just that easy to assign it straight over to a retail buyer, you’d think that wholesalers wouldn’t build buyers lists full of investors, they’d build buyers lists of retail buyers, as their profit would be much higher. i imagine they don’t because of problems like you’re comign to
What I have seen is some wholesellers that they get people that want to buy rehab homes, they then have them get pre approved for a loan, as soon as they find the home, the get the buyer into it with a loan and the assignment fee built into it. How does this work?
These “people” that you are referring to are just other investors. Once you get a contract to purchase, you simply tell the investors that they need to provide you proof of certified funds, and make sure they can meet your escrow demand and can close in the amount of time you are looking for. If they know what they are doing, they will either already have the cash, or they have lenders to go to for the cash. Once they provide this proof, then you get them (and the seller) to sign the assignment form, and get the contract, assignment, and all earnest money into the title company…then you just wait to close…that’s it…