Do I Need Good Credit To Wholesale Houses?
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!
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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!
More free FAQ videos here:http://wholesalersmarts.com
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by: Eddie Case