I typically focus on land contracts but every now & than I get contacted by motivated people who want to sell there house. I hear a lot of people talking about wholesaling/ owner carry & learn more about it being that I get submissions from time to time.
The possible deal: owner owes $130k & the house is worth $150k. Can someone give me ideas if there is a possible deal here or is there not enough equity to work with.
@Pono Wright Well, does the house need work, or is it in pristine condition? How good is the location? What are market rental rates for similar properties in that area? Where did you get the value of $150K? If off of Zillow, try a better source. Too many unknowns to even answer your question.
Those margin are VERY slim. If no work is needed and it is in a great area/rental market. Maybe wholesale it to a buy and hold investor.
@Pono Wright Pono, check out Podcast #70 with @Grant Kemp. Discussion is about "subject to" deals. Very interesting strategy for when the seller has little equity!
@Walt Payne Thank you for that small checklist to start off with. That's exactly what I was looking for. I'm finishing up that checklist tomorrow. Big help..Thank you. @Elizabeth C. That is also the kind of ideas I was looking for...I will definitely have to get more familiar with how all that works before I move forward with a transaction like that. @Matthew Loring That will be the first thing I listen to in the morning.
Thank you so much for your suggestions & tips.
@pono wright, your on the right path with the subject to or a lease option. Check out a guy by the name of Brian Gibbons. He's got a ton of you tube vidoes and is a master at teaching these types of deals.
I'd do two things. First, look at the numbers to see what it would take to make it worth my while. Factor in your costs to make the deal happen, any costs to upgrade or repair the property prior to sale, your required profits, and a fudge factor for unanticipated costs or delays. If it all looks good even with the current financing, then consider move ahead.
Second, ask yourself this - after you set up the deal, could you assign it to a willing investor at a reasonable price? If so, then you have a built in exit strategy.
@Gavin Welch Thanks for that suggestion, that's what I was hoping to get out of this forum post. @Todd Curtis Me being so new & open to this strategy, those are great suggestions that I needed to kinda get my feet wet.
Thanks Again guys
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