The conventional wisdom would be that most distressed homeowners you find today would be upside-down on their loans, which obviously wouldn't make the property a good wholesale candidate.
To all you wholesalers out there - are you finding many straight-up wholesale deals these days, or are people mostly upside-down and better candidates for a short sale?
Wholesale your short sales.
Banks discount a lot on properties that need rehab.
Straight up wholesale deals have always been and remain over 90% of my business.
National statistics show that over 30% of homeowners do not have ANY mortgage on their property, and they remain the best demographic for getting wholesale deals. If you don't have a mortgage on the property, you can't be upside down.
Short sales and REO's are absolutely potential avenues for finding deals in this market, but to overlook homeowners with good old fashioned equity is a mistake.
Obviously the majority of possible sellers will be upside down on their mortgages, but for me it was the same way in the peak of all this too. Even with targeted marketing, most people that have ever called me (over 90%) owe too much to even take my offer. That hasn't changed any over the last year.
dude there are plenty of houses out there with good equity...
some people cant afford there mortgages anymore but they are still current on there payments barely.....subject 2- wholesale.....but short sales are right now if you know how to close them correctly.
What type of wholesale deals are you interested in?
I don't wholesale, but my last two purchases:
The owner was placed in a nursing home. The house was free and clear. There were no relatives and whatever he got was going to pay for his medical. When the money was gone, SS was going to pay for his medical. He was never coming out of the nursing home and he didn't much care how much he got.
A widower re-married and his new spouse refused to live in the prior wife's house. The house was free and clear. The new wife was aggitating to get the house out of their lives.
There are plenty of reasons to be motivated that do not involve inability to pay the mortgage, or the house being upside down.
I'll be meeting a gentleman later this week who has a house in Suitland, MD that is worth approx. $170K. HIs mortgage balance is $66K. I told him I could probably offer him $110K minus repairs. I'll say there's equity.