This is the largest group of buyers that you will come into contact with. They usually will have a large credit line
established at one or more banks, and they will also have a track record that attracts banks to gladly deal with them on
a property-by-property basis. This type of borrower deals with many banks. Usually each bank sets its own maximum number
of loans outstanding to one individual.
Sometime they may cap offtheir lending requirements, even if the buyer is a very strong borrower on paper, as it
reduces the bank's liability. The most preferable way for these buyers to purchase properties is an individual bank loan
for each property they buy. Yes, they may have a large credit line that they can draft in a matter of minutes to pay
cash for a property, but that may significantly interfere with the cash flow of their operation. More importantly, they
may have to close twice, which escalates the closingcosts needed.
For example, if it is a truly great deal and needs extra quick closing attention, then they may draft from their credit
line to close and pay you off and secure title to the property. However, they probably close again with a bank to turn
the deal into a "construction type" loan, which is needed for the true fixer-uppers. This results in a doubling of the
Try to get to know your buyers' businesses and financialsituations as intimately as they will let you. This is something
that will take place over time, as you establish a relationship and rapport with your buyer. But knowing this
information will help you structure the wholesale deals that you present to each buyer.
For example, if you have an established history wholesaling to a proven buyer, knowing that he or she has credit lines
and approved bank lending, you know you can go for a quick closing. If you know that another buyer goes through ahard
money lender and they need the deal to be 65% LTV including rehab costs, they might take a little longer to close, or
they might need a deal with more room than a cash buyer.
If your seller is really keen on closing (like yesterday) and it is great deal, you still want to put a minimum of 30
days to close in your contract. But you can sometimes put in a performance clause that gives you an extra $500-$1000 off
the purchase price if you can close in less than ten days.
Your buyer will most likely have to draw from a credit line to meet those expectations, so knowing who can truly close
quickly can put extra money in your pocket.