Wholesale Counteroffer - Need Help!

Bird Dogs, Wholesaling
1

Here’s the scoop – I am a new wholesaler who’s trying to get his first deal under his belt. I’ve been working with a realtor now for the last month on making offers from daily foreclosure listings from the MLS. I’ve made about 15 offers, all turned down, until this morning – I had a counteroffer made from the bank which, number-wise works for me:

ARV: $140k
Est. Repairs: $15k
Bank offer: $77k

MAO to Rehabber: $83k
My Profit: $6k
Rehabber Profit: $42k

Unfortunately, within the bank’s counter-offer, they mention the following:

“Buyer is to submit a complete loan package to a conventional lender of buyer’s choice within 3 days of acceptance. Buyer to show proof of completed loan package to seller’s agent within 7 calendar days of acceptance along with buyer’s proof of liquid funds for down payment.”

Now, all of my offers have had a financing contingency, with an attached-prequalification letter. The issue is that I never intended on getting financed as I would just wholesale the property during my 10-day inspection period and then have a double-closing.

Is there anyway to get around this, or do I just pass on this one?

Jerry

2

I’m a newbie too. What does MAO stand for?

3

MAO = Maximum Allowable Offer

In the left column, under “Investor Information”, there is a link called, “Investing Abbreviations”

http://www.reiclub.com/real-estate-abbreviations.php

Just above that is a linked called “Investing Glossary”.

A lot of the terms and acronyms used in the Forums are in there…

Keith

4

you dont need to show a bank loan or financing all you need is to show proof of funds. Get your rehabber to show the proof of funds and your set. Have them place it in an escrow account with the title company. You dont have to show your name against the money just proof someone has the cash to make the purchase. Jump on your rehabber and get the info asap to the title company or bank and do the deal. If you didnt do alot of work for this 6 grand isnt bad. If you need other deals out there i know of a few that would make a little bit more

5

Well, I have until Sunday, the 28th, before 5pm to act on the bank’s counteroffer.

As is, I have a list of possible investors who responded to an ad I placed in the newspaper last fall. My concern is that I won’t have a rehabber lined up in a week’s time with the proof of funds.

6

so you dont have a rehab buyer yet then. Thought you had one. It sounds like a good deal. Start asking around asap as to anyone that might want to become part of the deal.

7

Already on it. Thanks!