My First Memphis Wholesale Deal & The Most Motivated Seller Ever

[Michael Williams]

I discovered real estate investing when I moved to Atlanta in 2015, where I did two deals then stopped. I relocated back to my hometown of Memphis after retiring from my job of 27 years. Just jumped back into real estate and used my same old tactic to get a wholesale deal. I've had a CASH 4 HOUSES sign on my car for one month and I get the attention of one of my coworkers that said they are looking to sell a house. 

We set up the appointment and I ask the textbook questions. To my surprise, I get the textbook answers. 

The seller said that he outgrew this house and moved to a bigger house because the wife (Boss) was complaining. [I know the feeling]. I look at the house and explain that I work for a group of investors that buy houses. Textbook responses:

Me: Is there still a mortgage on the property
Him: Yes about $67k (comps put house at $93k)
Me: How soon are you looking at moving on the sale
Him: Yesterday
Me: Do you want to get any money from the property
Him: No I just want it gone
Me: Will you sell for what you owe
Him: Yes, but I don't want to pay anything out of my pocket
Me: Are you willing to sign documents giving me the right to verify the amount you owe
Him: Yes
Me: There are many ways my investors can buy your house, are you open to creative ways other than cash
Him: As long as I don't have to pay that note. How soon can you let me know something, I need this done
ME: We like to cross all of our "T"s and Dot all of or "i", so we like to give ourselves 30-45 days but the goal is to make it happen sooner. I will write up a contract and we can both go over it in a week. 
Him: Great

It get's no better than that. 

His monthly note is a bit high at $810 per month. Rent-O-Meter has the rent at $934 for that area.

My strategy is to develop relationships with loan officers that have relationships with people that can afford a home but can't qualify through traditional means. The goal is to create a lease option wholesale deal that will require a $10,000 non-refundable deposit from a tenant buyer that will go towards the purchase price, which will be $110,000. I will be able to get this because the potential client CAN NOT qualify for a loan but has sufficient income to pay the new payment which will be $1,100 per month. 

I will market as a No Bank Qualifying home. I am an internet marketer and graphic designer that create my own ads. Plus I understand the power of good Ad copy and storytelling.  

I will get $10,000 on the front end, $300 (minus insurance) monthly, and $40k on the back end.  Let me know if I missed anything or can make it any sweeter?