Skip to content
Wholesaling

User Stats

4
Posts
1
Votes
Alex Bogue
1
Votes |
4
Posts

example of Wholesaling with mortgage

Alex Bogue
Posted Apr 15 2024, 14:04

ive got a potential seller with an existing mortgage left over of 190k an the home arv is abt 310k how would i go about my offer price formula with the existing mortgage? 

310k x 70% minus repairs and my fee?

or is there a specific way of handling homes with mortgage

User Stats

842
Posts
883
Votes
David Ramirez
  • Wholesaler
  • Tampa, FL
883
Votes |
842
Posts
David Ramirez
  • Wholesaler
  • Tampa, FL
Replied Apr 16 2024, 13:07

There is no specific way to handle properties with a mortgage. Most properties you will encounter have a mortgage that will be paid off on the closing date. You just have to ensure that the mortgage balance is not higher than your offer; otherwise, the seller would have to come up with money to close, which is highly unlikely. If not, you would need to structure a creative deal by purchasing subject to the existing mortgage.

And if taking over the mortgage is not worthwhile due to the condition of the property, your last option would be a short sale.

Before structuring a creative deal, make sure you are guided by someone who has done it before. Feel free to reach out with any questions!