Eddie Case asked:


You need not worry about your credit rating when wholesaling because it NEVER enters into the picture for this type of real estate deal! As a wholesaler you are never going to need to qualify for a mortgage.

Wholesalers either \”double close\” on their wholesale deals or they \”assign\” their contracts to their investor/buyers eliminating the need to ever fill out a credit application!

Since the majority of wholesale deals are funded with Private Money and not conventional funding, traditional credit based borrowing goes right out the window!

When \”Double closing a Wholesale deal only one loan package is used to close both sides of the deal. Your Buying from a motivated seller and then your selling back to your Investor/Buyer with the same money, (using it twice!). So the ONLY person who needs to give credit info is your Investor/Buyer, because he is ultimately one the one who is on the \”hook\” for the financing with the private lender, NOT YOU!

SO YOU DON\”T HAVE TO GET YOUR CREDIT PULLED! YOUR CREDIT DOES NOT MATTER ONE BIT because your not the one repaying the loan!

What other style of real estate investing allows you to control hundreds of thousands of dollars of real estate deals even if you have \”Bad Credit\”?! NONE that I know of!

Also, because most wholesale deals revolve around Private Funding, there is NO CREDIT AGENCY REPORTING! This is  because the \”Private Lenders do not report to the agencies. So your buyers credit rating NEVER shows any new loans on their credit report!

This helps your Investor Buyers credit rating because their debt to income ratio never changes even though they may have placed several hundred thousand dollars worth of mortgages with the Private Lenders.

This means your investor buyer never looks like his credit limit is over extended! Your buyer can still borrow more money from other hard money lenders anytime he wants, in turn, he can still buy more deals from you!

But, if YOU have  blemished credit, YOU can still invest heavily in real estate as a real estate wholesaler. You can start TODAY!

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Eddie Case asked:

Together, my partner and I have wholesaled a combined 450 Deals over the last 7 years. And the majority of these deals were funded either one of two different ways and they are:

1.) CASH ONLY DEALS. Where the Investor/Buyer brought all CASH to the closing to purchase the property. My FAVORITE type of buyer (cash is king:))!

2.) HARD MONEY (Private funding). Hard Money is \”private money\” meaning, there are no traditional institutional banking guidelines associated with the money. The money comes from private individuals who lend their own money directly to the wholesale buyer. The money is termed \”HARD MONEY\” because the point (4-10 points per deal) are high, and the interest rates are High (12- 20 %) and the term averages of ONLY 12 months! Now that\’s some HARD DANG money!

Hard money has some pretty \”harsh\” terms, but also has it\’s benefits! Here are a few of the GREAT benefits of using hard money as a real estate investor:

* Your deal is usually a true \”NO MONY DOWN\” deal! You can\’t beat that! Hard money lenders can lend you your:

a.) purchase price

b.) repairs costs

c.) all of your closing costs

And roll it all into one mortgage. Also, Hard Money Lenders do not require you to put the typical 10% to 20% down on the property you are purchasing (conventional banks do!)

* Hard money lenders will usually lend on any property regardless of its current condition, whereas most conventional lenders (Banks) will not!

* Hard Money Lender do not report to the Credit agencies! So your debt to income ratio is NEVER effected regardless of how many hard money loans you currently have open! This means you can do multiple deals at once using different hard money.

* A lot of hard money lenders will even give you 3-6 months after closing on the property before you need to make your 1st mortgage payment to them. This gives you time to repair the property and rent it or sell it before your 1st payment ever comes due! This really lowers traditional \”holding costs\” tremendously!

So as you can see, Hard Money has been specifically designed to accommodate the special needs of the real estate investor. Even though the money has \”hard\” terms, it works so well for real estate investors. Typically, most investors who borrow hard money only stay in the loan for an average of just 6 months, before either refinancing-out, or reselling the property in question.

We as the Real Estate Wholesaler, NEVER own anything long term. The longest we EVER own is a few hours during a \”double closing\” more on \”double closings\” some other time). And if we are \”assigning contracts\” we NEVER own at all.

So, we never have to \”Qualify for financing\”. When a deal is structured with a Hard Money Lender, and a \”double closing is going to get the deal done, the same Hard Money loan being used for the deal, will close both sides of the transaction (between You and the Original Seller AND You and your Investor/Buyer). So, only your Investor/Buyer needs to qualify with the Hard Money Lender for the deal! This is because your Investor/Buyer is the \”end user\” of the money and is the one guaranteeing the loan, NOT YOU! Case Dismissed!

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