Wholesaling subject to's

[Jeff Fairchild]

Do you guys usually keep subject to's for rental properties and just wholesale other deals? If I were to wholesale it how would I determine the price to sell it for to investors?

[Stephanie Barnes]

I usually wholesale subject-to's. Most of the time they are easiest to sell since the buyer generally doesn't have to worry about financing or having enough cash to buy. If you are able to cash flow quite a bit and there is lots of equity I would suggest keeping it yourself though.

To determine what to wholesale it at, I just basically do what I do with any other property and base it off comps and repairs needed. I just add my fee on and have the buyer put down that and any amount of payments the owner is behind on (and if they have tons of equity and are getting something out of it, their money too).

You should find that if the price is right (and maybe even a little higher than most deals because of the terms) subject-to's and anything with owner financing will be the easiest to get rid of.

Hope this helps!
Stephanie