Lets say i spoke with a seller that is not interested in selling at a deep discount but is interested in seller financing options. Can I negotiate great terms and wholesale/assign the contract to a buy and hold investor like i would a traditional wholesale deal?
If you're planning to wholesale, you will need to negotiate enough of a discount to make it a wholesale deal...this doesn't sound likely. Otherwise, you will need to negotiate a good buy and hold property that would still be interesting to an end investor that you would assign it too.
I've come across a situation where the seller did not want to sell at a discount at a price point where i could wholesale it normally but the seller would agree to sell below market value AND I could get great seller financing terms that would cash flow $500 a month. So instead of wholesaling to a rehabber, i could wholesale to a buy and hold investor. Does that sound like something that investors do?
@Mario T. Absolutely! Many buy and hold investors are maxed out on their loans, and are constantly looking for owner finance deals. If you can get a low money down, low interest rate deal negotiated you could be in a good position. It would help to know how much the house would sell for compared to what it would rent for and how much money is needed for repairs. Is this a deal you found? Congrats on moving forward! I know you were discouraged the other day. I can tell you're a winner and will figure this thing out!
Depending on the margins, I could totally see a buy and hold investor getting into something through a wholesaler. Cash flow and cash on cash are what the buy and holder is probably looking for, and you're the conduit from which good value is coming. That may be an interesting niche if you can swing it.
I've been willing to pay out significant finders fees for friends/associates who were willing to bring me a deal in my target market. That way, we all win.
Mike Richter, Richter Real Estate Holdings, LLC
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