Wholesaling without flipping?

I’m a mortgage banker of 15 years. I have recently decided to start wholesaling in a unique way, or so I think it might be.
I want to take out options on properties that are in need of repairs and then wholesale them to the end buyers using an FHA 203K rehab program.

Here is the issue. Because of FHA, and Fannie and Freddies flipping rules that dont allow a property to be financed if it has sold in the last 90 days and it doesnt allow an assignment or sale of a contract, how can I do this and protect my profits. I want to do this on deals that are listed as well but can see some real issues with the listing realtors and their thoughts and dutys.

Also I am looking at working a certain loop hole in the FHA guidelines that took away down payment assistance programs, however allow the down payment of 3.5% to come from a family member and doesnt really have any issues with where the family member got the money. So the family member can borrow the money and thereby allow for 100% financing even on a rehab at FHA rates and can go purchase price plus rehab without the typical ARV issues you would have on hard money.

Someone please comment on all this, I need some different points of view.


Sounds like you will need another way of collecting your profit. Can you collect it as mortgage broker fees?

You are trying to wholesale to end buyers and not other investors. An alternative of what you are trying to do is to do sub2 financing.