Need SERIOUS Help! HiGH EQUiTY Opportunity. To Buy Or Wholesale?

Question

Grandpa Died 2018 Left This Really Beat Up Brownstone To My Mom & His Sister. The(Pre Covid-19) ARV=$2.6-3M. My Problem Is They Are Both Financially Illiterate & Extremely Stubborn. The House Is In Terrible Shape And Would Need At Least 500k For A Full Rehab & 200k To Make It Livable, And They Are Overwhelmed Because oF That. Talked To My Mom I May Be Able To Acquire For 200k, Which Would Be AMAZING. I Really Want This House. However I Just Started Building Credit And I Make $21/Hour Full Time, While Currently Developing Multiple Streams oF Income. With Only $1000 Savings To My Name. How Would I Go About This Deal, Especially In These Times? Could I Possibly Wholesale It To An LLC Or Trust I Develop For 650k(Some Kind oF Loan), Then Use The Assignment Fee To Make The Mortgage Payments For A Year While I Invest In Cash Flowing Property+ Businesses? Or Get Loan For 300k And Somehow Use The Equity To Refinance? What’s The Best Business Structure & Course oF Action To Take For Tax Benefits In This Situation? Could I Somehow Use New Home Owner Programs And/Or Grants? How Can I Make This Work? What’s My Best Option For A Loan, Other Than A HML With Ridiculous Rates? ALL Suggestions/Advice Highly Appreciated. Thank You.

Mark H. Porter · Answer

Sorry, I had to stop reading. How are you capitalizing every word? It’s very hard to see the beginning of a sentence.

Menyy M Mosii · Answer

Thanks For Your Response. I’ve JV’d On A Few Wholesale Deals, And I’m Working On A Few Right Now For Myself. My Credit Score Is 680-695 And Increasing It’s Just My Credit Age Is 6 Months. Despite The Hit I Took From This Epidemic I Do Think I’m Financially Responsible And Gaining More Stability Every Day. I Feel Like Selling Is Not The Best Option Simply Because The Offers Were Ridiculously Low(Which I Understand). I’ve Read Countless Books, Blogs, Content, Listened To A Bunch Of REI Podcast And Watched Youtube Videos. I Don’t Have Lots Of Experience But I’m Knowledgeable And Do Know A Deal Out Of This Is Possible, Just Need A Little Guidance. If I Can Acquire At 200k And Keep It In My Family As A Great Asset Why Would I Not Try? Furthermore My Mom Has No Real Estate Knowledge, And My Great Aunt I Know For A Fact Is Terrible With A Large Sum Of Money. What Would You Do To Acquire This Property Given The Circumstances?

Guifre Mora · Answer

Menyy,

When you use all the real estate millennial jargon into one long endless sentence- it's closer to a Starbucks order than an English paragraph.

I read this rant 3 times and after the word, "AMAZING" everything else is nonsense.

Let me recap:

You have no real estate experience, you only have $1,000 (and working on multiple streams of income) no credit to speak off and you are looking to finance $700,000 (3/4 of a million dollars).

Your mom or aunt are nor illiterate or stubborn, I think they are seeing this little more realistically than you are.

But in the spirit of BP here are some avenues to explore.

1) Sell the asset, the quickest, and easiest for your mom and aunt to get their inheritance. (it's their inheritance, not yours)

2) JV with a developer or rehab professional that has the experience and funds to take on this big project.

Let them make the decision. I wish your mom and your aunt good luck.

Need SERIOUS Help! HiGH EQUiTY Opportunity. To Buy Or Wholesale?

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