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It sounds like individual buyers could use a service that purchases homes in cash for them and then handles financing. I also wonder if a wholesale buying club
by 1123581321 7y ago
It sounds like individual buyers could use a service that purchases homes in cash for them and then handles financing. I also wonder if a wholesale buying club would be viable in these markets.
- jedimastert 7y agoI thought that was the idea behind the current bank-mortgage-realtor system?
- 1123581321 7y agoIt is, but closing a mortgage is more time-consuming than the buyer handing over a check and requires some delay. There is also a chance that a mortgage sale won’t close.
- instaheat 7y agoGreed and the basic human desire for making income will make this very difficult. Wholesalers as they exist in the market already make it difficult as it is. There are so many bad ones. Even if there were a service that was "for the people" and bought homes for cash, the property would still have to be fixed up. If the buyer was OK with a fixer up property AS IS it is hard for the Investor to sit on that financing, they can't wait for 30 years to get paid. They'd have to sell the note - and who is going to buy it? Certainly not Fannie/Freddie depending on how "bad" the place is according to their standards. It's just not economically viable to have all that money in play even if the interest rate is higher.