Deal Analysis

[Marcus Louvier]

Hey guys,

Today, my first very motivated seller came to my inbox! I'm hoping you guys can help me analyze the deal.

3 bed/2bath 1600 sq ft

Asking: $90k

Loan Balance: $90k

ARV: $95k

Currently Monthly Payments: ~$600 (said he had to look for exact amount)

Repairs: Minor/Cosmetic if any

Is this a good sub 2 deal? Any advice would be greatly appreciated! 

[John Blackman]

Remember you are becoming a steward for this guy's credit.  The number 1 thing I see go wrong with sub-2 deals is the buyer doesn't have enough liquidity to carry the note and the property gets foreclosed on.  You would walk away, but the seller will be pooched in the end.

So don't you dare buy this thing unless you can carry it for at least 6 months so you have adequate time to rent it or sell it.