Wholesale deal or not?

1 Reply

Home is located in a very nice neighborhood. All brick, 4 bed, 2 baths, over 2630 sqft. ARV is around 370K. Currently the owners are down from 375K to 325K. Owners still owe on the mortgage. the home is vacant, property was last purchased for 179K in 1997. Any advice on wholesale or owner financing? I have a meeting scheduled for tomorrow. All information was gathered over the phone.

Thanks

I'm not sure what you mean by "wholesale financing". For owner financing you need to know how much equity they have. What is their situation, do they need the money now? How much will they carry? Will they wrap the loan? But be wary of Due on Sale from the lender. Determine each term's amount that is most advantageous to you (that you think that you can sell), and your limit, before the meeting. Generally, the less down, and the longer you can avoid paying money, the better. With a carryback I would try to include an exculpatory clause in the contract limiting liability.

I'm not an attorney, and this isn't legal advice. I would recommend that you seek the help of an attorney and/or real estate agent. I could be an idiot that doesn't know anything.

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