Need help to evaluate wholesaling a subject to deal

2 Replies

I need assistance in evaluating this subject to deal. This is my first real estate deal and I would like to wholesale this deal for quick cash. I have this house under contract “subject to”. The Seller is behind on payments by over 1 year.

Location: Atlanta, (Decatur) Georgia

Comps: $75,000 to $80,000

Repairs: $5,000 – (cosmetic and replacement of a refrigerator)

Condition: the house has been vacant for over a year. However, the seller lives nearby and goes to the house once in a while to make sure that things are ok.

Amount to pay the bank to make the loan current: $17,000

There is only one loan on the house. No other liens on the house.

The Loan period is 30 years started in June 2011

Principal amount: $107,725.00

Rate of interest 3.25%

Interest type: ARM. Next evaluation of the interest rate will be in September of 2015

Monthly loan payments to the bank: PITI $592.06

Market rent potential: $850 to $900

Sec. 8 rent potential: $950 to $1,000 (section 8 will rent houses on this street)

I do not understand subject to deals completely.

Is there enough meat on the bone for me to wholesale this deal? So that I make cash and the investor makes a decent return.

Thanks in advance.

Meat on the bone?  Whoever takes it over would be $60kunder water.  There's no deal, unless you did a short sale, which is much harder to wholesale.  You need equity, otherwise no scheme will make it a deal.

@Bijal Patel

Curious how the owner got a loan in 2011 for at least $107K and values are now $75K.  Something is missing here, but no matter what, as @Wayne Brooks this has short-sale written all over it. Unless you're an agent, the chances monetizing is slim.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.