Wholesaling And Credit
I've heard time and again that wholesaling is the best way to start out if you don't have much money saved up and bad credit, at least til you get yourself situated. Well, how do you get property under contract if you can't qualify as someone who will buy the house? Most of the people I've been dealing with lately want to see a prequalifying letter saying that I can purchase the house... if that was the case, I would purchase the property for myself and retail it.... what am I doing wrong?
Raquel:
Go to a hard-money lender is your area and get a letter stating that you are approved to purchase X amount of real-estate and show that as your proof.
Then tie up the property, assign it to your wholesale buyer and collect your fee!
Best Regards,
Jeff Adam
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What kind of proof of income do they usually need and how do they get the amount that you are approved for? thanks, Jeff
Raquel:
They want to see w-2's and credit....
Best Regards,
Jeff Adam
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Your sellers are not motivated enough! I've never had anyone to ask for proof of funds. Most of the sellers think I can write a check on the spot (which I can't).
What type of houses are you locating?
Price range, condition, etc.
How are you locating your houses?
well the last one was a property that was owned by a guardianship in an up and coming area and they need a prequal letter before even forwarding the offer letter to the courts. i guess they had a few offers on that one..... the house was $80 a square foot and the norm in that area is at least $130 a square foot... they hired a horrible appraiser!
If that's the case, I can see why a proof of funds letter is required. But most want require this info when placing houses under contract and they will accept $10 earnest money deposits (not all but most). You have to feel out the seller to see what they will accept.
Raquel:
What Junker is stating is true when it comes to FSBO's. But when you are dealing with 'listed' properties the realtors usually intervene and request the bigger earnest money deposits, pre-qual letters etc.... They want to make sure it will close so they get their commission and to protect their client.
If you find the right hard-money lender, you will be able to get a letter to help you buy properties..
Best Regards,
Jeff Adam
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