can this be a wholesale deal

Question

Hi,

I am just started with wholesale. I have some free time lately and are driving around for possible properties. I come across this owner who owns this rental property(he also own other properties of similar situation). he is already late for payment(3-4 months) and he is behind on last year's property tax. the market value of the house wil be around 130000, and mortgage balance is 120000.  currently getting about 1100/month for rent. he is not able to refinance and is very motivated to sell, all he wants is get out of this.

it appears to me there is not much to be done except a shortsale/foreclose. but I want post it on BP and see what options will you consider?

Account Closed · Answer

Sub2 would work, depending on how much fixup it would take to get it rentable and how far $-wise they are in the arrears.
If the terms are right, you might be able to pull it for 10 years at a good passive income. Might be too long...

Account Closed · Answer

I'm in the boat.

I've got one now that I'm thinking about doing a short sale - wholesale.
Problem is, you will have to come into the first closing with money then do a double closing. That's if it's going to another investor.

If you are selling to a non-investor buyer, you might have to buy the short sale, allow it to season for 30 days then sell to the final buyer. If the bank allows it.

I've had a view banks decline the short sale due to my contract stating, "and/or assigns".

I'd like a little direction on this one too.
Haven't done a short sale in almost 8 years. And I've heard a lot of things have changed.

Nick J. · Answer

I think logically, short sale is indeed the better option for both of your sellers. Like Robert Lett was getting at, nowadays, its just not as easy or profitable to short sale flip(at least in my market) and yes, you should expect to close/fund it before reselling it.

For me personally, these would be ideal for me to just try to list them as an agent since getting my license and still making a few $$$ in commission while helping them. If there was much more equity and you had the funds to do it, I would consider catching up the debt and gain ownership through Sub2, wrap etc.... but being so extremely thin, I say, NEXT.....