Edison, NJ · Member since 2016 · 3 posts · 0 votes
Hey fellow members,
I am a new real estate investor in NJ and I have a question in regard to wholesaling. I was a bit confused...If a property (that may be distressed or the seller has to sell) has any debt like liens and encumbrances, does it still "qualify" for a wholesale property? I was told it doesn't and I didn't quite understand this. Thank you for your time .
Real Estate Investor · Buffalo, NY · Member since 2013 · 227 posts · 318 votes
10y
@Arvind Saxena you should be able to still wholesale it. You just need to consider the lien into your purchase price. For example I recently wholesaled a house that had a 10k lien for a business loan. I explained to the seller that I would take care of the lien and give them 40k for the house. My end buyer paid 60k for the house. I got on the phone with the lien holder and got them to settle the 10k debt for 6k and at closing three check were written. One for 40k to the seller; one for 6k to the lien holder, and one for 14k to me. All using the end buyers money. I also do it all the time with back tax liens. Hope this helps. Good luck!!!