Typically NO.. Almost all wholesale properties must be purchased with either CASH or HARD MONEY for several reasons. The properties are usually distressed and conventional lenders typically won’t fund a property that needs renovation. Wholesale properties need to close very quickly and conventional lenders need much more time to fund the transaction. Conventional lenders will not fund a transaction that is being “Flipped”, it must be seasoned and the chain of title must be in the name of the entity that is selling you the property. When the property is being “Flipped” the entity selling the equitable interest is not the actual titleholder, but a middleman flipping the property for a profit.
Hard Money is Private mortgage financing provided for purchasing and renovating distressed properties in the market today. These loans are typically 3-12 month loans that allow Real Estate Entrepreneurs to leverage their money to purchase 1 or many investment properties with their available capital. These loans are sometimes referred as Bridge loans or Hard Equity loans.
Most Realtors have many buyers and sellers that they are working at any given time. Their time is being spread very thin between their clients, which typically mean that they have very little time to devote to any one person. Wholesale companies make their money by finding investment properties for their customers everyday. They put in hundreds of offers on properties every month to find the “cream of the crop” for their customers. The sheer number of investment opportunities that they provide in such a short time period is unmatched by the service that you will receive from any real estate agent in the market today.
Everybody’s tax situation is different and certainly unique to him or her. We recommend that all Real Estate Entrepreneurs speak with a qualified CPA that can go through their personal scenario and determine what is the best plan of attack given their circumstances.
This a one of the most common questions that I am asked by Real Estate Investors today. The answer depends on your circumstances and your ultimate goals. If you are looking for a monthly cash flow or building a retirement income than renting is probably your best scenario. If you are looking to create a full time career or wanting to add some additional annual income than reselling the properties is probably your best option. However, the best way to determine this is sit down with one of our investment experts and discuss your goals, wants & needs with them. This will provide a very clear picture of what everybody involved should do to fulfill your plans for the future.
Nearly every Real Estate Guru, Economist & Savvy Investor is saying that “Now is the Time to Buy”. With interest rates and housing prices at or near historical lows the monthly cost to own a home vs. rent a home has never been better. With FHA & USDA home loans available to first time home-buyers now is arguably the BEST time in our country’s history to purchase a property.