Hey Nick,
I just wanted to get your opinion about the viability of wholesaling condos?
Thanks
Hi there,
Condos are interesting in this market - it depends on your end buyer's exit strategy. If the majority of buyers in your buyers list are looking to fix and flip, you will find that many of them will have challenges once they go to sell to the end retail buyer.
Most condo associations are not considered "FHA Approved", and therefore are not financeable, except through local lenders that have their own special programs.
The bigger, more established ones have a better chance of being financed by first-time home buyers (the majority of buyers out there now), but even then, there are certain rules that must be met (i.e. more than half of the units in the complex must be owner-occupied).
However, IF your investor-buyer is looking to fix & hold for rental income, it could be a good match, as they wouldn't have to have their retail buyer fight the tight credit markets. It would be a matter of, "do the numbers work?" and "Is it worth my time and investment?"
So...can you do it? Absolutely. Just always, ALWAYS, know your customer (your investor buyers), what they're looking for (their criteria, and exit strategies), and market to those deals. That's the quickest way for you to get a paycheck, and either assign or double close your way to the next level.
