Trying to create a solution with this wholesale lead. I'm still new to seller financing but have some understanding of it. Let me know your thoughts! Can you make anything out of this?
2 acres that has a 4/2bath 1700 sq ft house and a 3/2bath 2006/2007 model trailer on property plus a barn. House rented for $1400/month and trailer for $1100 a year ago.
Owner owes $143,000 on the property. All up to date on payments. No other liens.
Estimate $75,000 to repair house, trailer and barn/yard for a flip.
Owner is open to owner financing. House would be worth $225,000 remodeled. In highly desired flood zone, good area and there is a new residential development down the street that is starting.
How to wholesale this? My thoughts so far - low money down, minimal to no payments required for 6months to do the rehab. I know the pay off is high but is it impossible to do a deal where the cash on cash return works for a rehabber? I'm not even trying to get a large wholesale fee. I'm just trying to create a solution here.
Also because of the condition of the house and trailer, I only see it as a rehab project. Curious about your thoughts and how some of y'all would handle this.
@Courtney Fricke , I don't reckon there's enough equity for a Wholesaler to get involved. Any wise investor will want to offer less than what's owed.
Seller financing might work if you want to take it on yourself. Why not?
ie. If it's not suitable for you, why is it suitable for anyone?
You are the sort of "buyer" that Sellers should be warned about!
ie. Who would let their own note be assignable to other random/unknown people?
Of course, others may disagree. [Following]...
@Brent Coombs hmmmm... a lot of reasons why I wouldn't want to tackle this one myself. Doesn't fit my portfolio, don't want to tackle a large rehab like that, location, etc. Doesn't mean I can't attempt to help this homeowner find a solution. Also, he knows exactly what wholesaling is. Just trying to find a solution for him.
@Courtney Fricke , why not ask all the Buyers on your Buyers List, in generic terms just like your post? You do have one of those established-buyer-relationship Lists, right?...
@Brent Coombs haven't thought of sending out a lead instead of a contract ready to assign. Thanks for your input!
@Courtney Fricke Numbers are no good here, $143k owed, $75k repairs = $218k for a place that might be worth $225k. Also assuming the seller would probably want more than $143k, not just the payoff amount.
What is a "highly desired flood zone"?
Anyway, unless I'm misunderstanding what you are presenting, purchase costs plus repairs equal $218. If ARV is $225, why bother? Buyer will be losing money on closing and holding costs, transfer taxes, etc. One little mistake/repair that wasn't anticipated will snag this deal like a gator jumpin for a chicken on a big hook.
@Marc Winter Here in Louisiana - we look at flood zones. Some are worst than others and therefore some are highly desired because there's little to no flood risk.
Right, it's very slim. But I'm new to seller financing and trying to create solutions. Haven't found any options for him yet other than for the seller to try to tackle some repairs himself and then try to sell when mortgage and rehab costs are less.
So the sellers are willing to carry the loan while the investor pays every month ? This would be a sub2. Owner finance would be if there was no mortgage.
225k for just house ? Or house and trailer combined
@Daniel Phillips - I see. And yes, 225k for house, trailer and almost 2 acres of land.
How do I contact you?
Just sent you a message, @Daniel Phillips
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