Need Help with My First Wholesale Deal

[Ryan Moye]

I have found a property that the owner is looking to sell. The home is in fantastic shape and shouldn't need any work remolding. The owner is just getting old and wants to downsize his portfolio. He has a VA loan on the house and I'm not sure if it makes any difference. $105,000 is still owed on his loan. He wants $50,000 for the house. Full value of the house is probably around 120k-130k.

Do these numbers work out? I'm brand new to wholesaling and I'm not sure. Will the buyer have to assume the loan? Is that going to be a factor, or does it not matter how much is owed if the seller if offering the house for 50k?

I appreciate any help.

[Jeremy Davis]

Originally posted by @Ryan Moye:

@Matthew Berry

In this case he is selling it for less than he owes, so how is it not a good wholesale for me? If the seller agrees to sell for 50k and he’s the one paying the mortgage then the buyer would be getting a 120k home at a steep discount.

 Ok Ryan, I'm going to be blunt here, but you need to step away from wholesaling as quickly as possible until you learn the basics of real estate, financing, and business in general.

Let me ask you, do you think the seller is in possession of the title, or the lender that is in control of his VA loan? If he still owes money on the home, it doesn't matter AT ALL what he "wants to sell it for", because unless that original note is paid off, you or your buyer is getting NOTHING in terms of a title.

With that said, this does open up to "creative financing", but you are far from reaching that point. Take a step back, read some books, and try again in a couple months. If you don't "understand mortgages", you for sure don't understand leins, comps, rehab values, etc...

I don't mean to be cold, but you are going to get yourself VERY hurt legally and financially if you keep down this path