Wholesaling properties with high equity
How do I wholesale a property with high equity? Take a property with an ARV of $100K and with owner equity of $80K. The seller is motivaged. Can anything be done with it?
Of course, what's to stop you from wholesaling a property with a lot of equity? But the better question, why don't you want to keep it for yourself?
Don't understand. If I offer $50K for property, seller loses $30K.
That's one way to look at it. Another way is that the seller gets $50,000 and is rid of the property(problem). It's all about their motivation.
What happens if the seller does not bring that extra $30k to the table when it closes? They very well may not have it. At that point who is the one responsible for clearing the "mortgage" left on the property?
The seller doesn't need to bring $30k to the table. According to this example the seller has a property with ARV of $100k, has $80k equity which means they owe $20k. So if he offers $50k, the seller doesn't have to bring $30k...the seller actually gets paid $30k. So like Roland said, you don't have to look at it as the seller losing money....if they accept $50k that means you are providing value by solving their problem. Win-win for everyone.