Frustrated With REO Companies and Short Sale Departments? Buy Wholesale With No Pain & Lots to Gain!
If you are looking for a new primary residence, you probably have a bleeding heart for those buyers who look and look, day in and day out for a decent property to call home, only to have their offer lost or unanswered for weeks; or worse – declined for no reason at all! Heck, you might have experienced this yourself if you've been out there making offers. Stop the rat race and buy direct from a wholesaler!
Most wholesalers will only buy properties in thought after areas, where demand is high for both primary residence buyers and renters. The most sophisticated wholesalers complete their due diligence before obtaining a property, so this is a big benefit to you – the end buyer! Here are a few reasons why you might benefit from buying your home directly from a professional wholesaler:
First and foremost, wholesalers buy BELOW current market prices! This is critical to their livelihood, so this is the usually the # 1 key factor and motivation before ever setting foot on the property. If a wholesaler makes an error on this step, it will be difficult for their exit strategy to work successfully and in a timely fashion. When an appraiser is completing an appraisal, it is customary for him / her to search for past sales within 1 mile, and when a wholesaler evaluates a potential property to buy, the search is similar but often more stringent. The wholesaler will purchase properties where they can make a profit, yet still sell the house to the next buyer at a discounted price. Why not buy a property knowing the evaluation of value has already been determined with such strict criteria and usually below market too? You Win!
Secondly, the wholesaler will often buy a property that needs cosmetic repairs (aka in the real estate world "TLC"); not always properties that need to be completely gutted or renovated. If you're using conventional financing to buy the property, make sure that the property's condition is not too bad – as many loan programs require kitchens to be intact, floating in each room, etc. Buying a home that needs light to moderate repairs is usually "doable" for most potential property owners, especially if you receive a fundamental price discount as a result. You Win!
Lastly, some wholesalers may offer seller financing with some of their properties. Such arrangements can be a huge benefit for buyers with less than good credit. Financing offered by wholesalers is typically shorter term (not 30 years), so be sure that the length of the financing offered will allow you enough time to get new financing on it. You Win (again)!
So add your local wholesalers to your list of potential property sources. You might just save yourself a boatload of money and get a house where you can add the finishing touches the way you want them.