Im not sure this is a wholesale deal I think it is subject too or maybe owner financing. I am new to wholesaleing and have sent out direct mail and this is first call I have gotten so was looking for a little help/advice.
ARV = $ 1,109,100Doesn't need any repairs maybe just a paint job its in fairly new condition Rents are around $3,500-$4,000 a month It is a townhome 3 beds and 3 baths Mortgage = $240,000, $1,600 a month, 2.875%
Could I do subject too or owner financing? Would I need different contracts? How would I put it together? Would it be difficult to wholesale because of the high price? This would be my First deal please PM me if interested in helping Thank you
How much does the seller want for it?
Subject to is possible. Same thing with owner financing. Yes, you will need different contracts. You should be able to get them from a local investor or a real estate attorney. If the price is $1,109,100 in California then no it wouldn't be difficult. If the price is $1,109,100 in Raleigh that would be a different ballgame.
The property is in Wilmington NC, ocean front property.
The seller is open on the price and didn't give exact number?
How would I calculate an offer for subject to? Is it same offer as wholesale?
Subject to is a different ballgame. Yes, the price is important. However, you do have more flexibility in price with a subject to deal. Since the owner isn't giving you a price. Give him one. Make sure that it works for you. Don't be intimidated by the number or the seller. This way, you'll discover what his number is.
Thank you for the help!
How would I go about coming up with a reasonable Subject to offer?
Is it still ARV x .70 - repair cost - assignment fee
@Connor S. Usually, with a subject to deal you can offer a higher amount than with a typical wholesale transaction. I'd recommend initially proposing the 70% etc. However, since this is a high dollar property you should be very clear with the owner that you are not the buyer. After you hit him with that number you'll have a better idea of how much he wants. Either he will accept it and you start the wholesaling process. If he rejects it, then you tell him that you tell him that you may have a way to make this work if he is flexible on the terms.............PM me.
I would be shocked if this seller is doing nothing more than playing with you..
someone who owns a 1.1 million dollar ocean front and have 800k in equity Is hardly a distressed seller.
they will just list it and sell it.. not sure what your trying to do here but.. that's my guess.. just a seller who is playing you.