Someone is trying to tell me that I cannot buy a property that Im using to wholesale with an hml for the reason that the hml will not take on the risk, they are trying to tell me that hml are only going to lend when doing rehabbs and etc. I find this hard to believe but if anyone can help me understand what this person is trying to say please let me know
With the costs associated with HMLs, it might be hard to profit on the wholesale end.
Also - some HMLs have seasoning on their loans, so double check that if you are going to wholesale.
Have you actually spoken with an HML lender, or are you only going by what someone told you?
If you are buying it using HML, then you are not wholesaling but rather buying and selling at a wholesale price. HMLs will want to make sure you have the funds to do the repairs and they will probably have you escrow it if not taking it from them. HML does not want to take back a property that needs repairs.
What is it you are having hard time believing?
I understand what you are saying I was under the asumption that you use the hmls to hold the property then sell at a wholesale price. Well now my next question is what are some option on gaing control of a property that you want to wholesale? Thanks for your respondes too!
What type of control are you looking for?
Basically when you want to wholesale a deal, you get it under an assignable contract and find a buyer who you would in turn assign them the contract for a wholesale fee. If you mean by control is the ability to show the property to potential buyers, then you can always explain to the home owner that you have list of buyers and you will want to show them the house before the closing date and that you need to make that as a provision of the contract.
Not sure if that answered your question
Ok I got you on that part now what if im working with a realtor,buying reo, or hud type property how can I have control over the property. Or maybe I should ask what kind of financing can I use to hold the property? Thanks again
again, what do you mean by hold? if you want to BUY it, then you need to pay for it by either getting a loan from a bank (needs good fico and income), a loan from hard money lender (up to 70% minus repairs), or cash from your account or financial partner.
If you want to wholesale it, then you cannot hold it. You will get it under contract for about 30 days, maybe 45 days. Contracting HUD, REOs, or dealing with realtors will require you to know how to assign the contract since they will want preapproval letter from you and they will not allow you to assign it.
You cannot just hold it in your name unless you buy it outright.