Is this a Wholesale or sub-2? Owes $230,000!

1 Reply

Hi. I wouldn't be posting this if I hadn't already searched for the answer on PB, here's my question.

Got a call from a lead today and he wants to sell his rental property. 5/2 single duplex with 2,214 Sqft. ARV for the area is roughly $340K ($339,333 to be exact). at 90% ARV the value is $305,400 - $15,498 in repairs ($7/sqft) - $10K (my profit) brings it to $279,902. He agreed to sell for $275K and I would sell it to cash buyer at $285K. Average rent for the area is about $2K/month.

With a mortgage still owed on the property of about $230K can I still do a traditional Wholesale deal? Owner already doesn't want to do a Lease option, so that's out of the question. And would a Sub-2 work in this scenario? 

Thanks in advance!

@Nicholas Renshaw

It's not 90%!!!!

70% of ARV, or even 65% of ARV less repair costs less your fee is your formula

If it's worth 340 and he wants 275 and it costs 15  to fix

Look at doing a joint venture with the seller or a cooperative rehab

You bring in 15,000 in private lender money

Figure 10% of value or 34,000 for sales costs

340-34-15-5 for wiggle room -10,000 JV fee

That should get him his 275k and you 10k

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here