Funding Wholesale Properties with Government Grants and Loans

One of the challenges of buying wholesale properties is getting them financed. Though not always, most wholesale properties are run-down, boarded-up and/or in need of rehabbing ranging from moderate to major. And banks just don’t want to finance them.

You have a wide range of creative financing options, including seller financing, assuming any existing mortgage, doing a wrap-around mortgage, using a hard-money lender, and more. If you’re serious about wholesale investing, make sure you know what’s available in terms of government grants and loans to fund your purchases and rehabs.

Community Development Block Grant (CDBG) programs through the U.S. Department of Housing and Urban Development (HUD) provide a wide variety of assistance through grants and loan guarantees. The goal is to provide funding for efforts that will benefit low- and moderate-income persons, prevent or eliminate slums or blight, or correct existing conditions that pose a serious and immediate threat to the health or welfare of the community.

Your local municipal or county officials should be able to give you information on what programs are available to assist you with funding and rehabbing your wholesale properties. If you can’t get your questions answered at the local level, contact the HUD field office that serves your area; either check the local telephone directory or visit www.hud.gov.