How do wholesale to o-o if in your offer you state you can close in two weeks? Do you have to have your o-o already qualified and ready to close or do you just put in your offer closing in 30 days or do you just close the deal with you funds and then quickly find a o-o to sell to? Thanks all
Most owner occupants are going to be using conventional funding, a bank loan to get the deal done. That being the case it’s going to take at least 30 -45 days to get any deal done. The best way to proceed with that type of buyer is to put the house under an option contract and exercise it with the buyers contract.
So the best way is to get the property on an option contract and then find a o-o within the 30-45 days and then sell the option to the o-o. Can I do the same with properties of the mls? I’m making offers on reo’s from the mls with quick closings cash offers using hard money. Once I get a accepted offer do I quickly start to market the property for o-o and then bring them to my lenders to close asap?
start by finding a buyer first and getting him or her qualified. once you know what they want and qualify for, find them a house. put it under option for 90 days, get the buyer to sign a regular purchase contract with 30 days to close. you’ll have to manage the project to ensure closing.
Purchase options are definitely the best way to go when your dealing with owner occ buyers for a couple of reasons.
- You don’t need to worry about seasoning issues with the buyers lender.
- You don’t have to pay double closing costs as you would with a back-back
- You can build your assignment fee in with the deal rather than taking it outside of closing.
Best of luck.