How to Buy a Wholesale Deal with a DSCR Loan in Ohio

If you’re picking up a property from a wholesaler and plan to use a DSCR loan, one of the trickiest parts is how to handle the wholesaler’s fee. The way it’s written into the deal can make the difference between getting approved or hitting a brick wall with your lender.

Let’s walk through it.

When the Fee Is on the Contract

Say the property is $96,000 and the wholesaler wants $10,000. If the contract shows the total price as $106,000 (with $96K going to the seller and $10K going to the wholesaler), then the lender usually underwrites based on $106K.

That’s good news, because most DSCR lenders in Ohio want the purchase price (or appraised value) to be at least $100,000. At $106K, you’re safely above that floor.

The catch? Some lenders really don’t like assignment contracts. They may only want a clean agreement between you and the seller no middleman written into it.

When the Fee Is Paid Outside of Closing

Some investors just wire the wholesaler’s fee separately either before or after closing. On paper, that means the purchase contract only shows $96,000.

Here’s the problem: if your contract shows under $100K, most DSCR lenders won’t even look at it. Even if the property’s a great deal, the lender will likely decline it right away.

How DSCR Lenders Look at Wholesale Deals

Here’s the reality in Ohio right now:

• Most lenders set a $100K minimum on either purchase price or appraised value.
• A lot of them won’t allow assignment fees at all.
• The ones that do allow it will want everything cleanly listed on the final closing statement.

Best Way to Structure It

The smoothest way to do this is to keep the total purchase price at $106,000 and have the wholesaler’s $10K fee show up on the HUD/CD (closing statement).

That way:

• The lender underwrites at $106K (above the $100K cutoff).
• Everything is transparent.
• The wholesaler still gets paid right at closing.

What to Avoid

Don’t let the contract price fall under $100K. That’s almost guaranteed to kill your DSCR loan options.

Don’t do “cash on the side” with the wholesaler. It’s messy, risky, and could be viewed as lender fraud.

Bottom Line

If you’re buying a wholesale property in Ohio with a DSCR loan, transparency is your best friend. Structure the deal so the purchase price includes the wholesaler’s fee and make sure it shows up on the closing statement. This keeps your loan clean, keeps you above the $100K threshold, and avoids last-minute headaches. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.