Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
If you find a MOTIVATED SELLER, that wants to sell the house because of there MORTGAGE is too high, they really want to sell the house, but has very little equity. Does this mean the house is not a deal automatically? I've already browsed BP and from what I understood there is nothing you can do , and no money to be made, other than a short sale.
Question: Wholesaling should only be with houses that have moderate to TONS of equity correct? If they seller is selling the house for just about what the owe, or has a mortgage that is more than the house is worth, or has little equity ( been there for only a couple of years), that is an automatic no no correct?
Portsmouth, OH · Member since 2009 · 198 posts · 54 votes
15y
Originally posted by Matt James:
If you find a MOTIVATED SELLER, that wants to sell the house because of there MORTGAGE is too high, they really want to sell the house, but has very little equity. Does this mean the house is not a deal automatically? I've already browsed BP and from what I understood there is nothing you can do , and no money to be made, other than a short sale.
Question: Wholesaling should only be with houses that have moderate to TONS of equity correct? If they seller is selling the house for just about what the owe, or has a mortgage that is more than the house is worth, or has little equity ( been there for only a couple of years), that is an automatic no no correct?
I would say sorry and move on.
There are some who would do a sub2 if the mortgage checked out as far as interest rate, payment and condition of the house. Most who do sub2 still want an equity spread though. Do you know anyone who does sub2? Maybe one of the pros on here will come along and give better advice than I can but I say move on. You are familiar with the rehabbing/wholesaling formula right?
Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
15y
It's probably smarter to move on I agree. The MAO formula you are asking? If that's what you are asking than I got that. Here's a good video on that : http://www.youtube.com/watch?v=iZ51LlCqZwA
Flipper/Rehabber · Seminole, FL · Member since 2010 · 859 posts · 316 votes
15y
Short Sale and double close...
Or you can try the sub2 and L/O route, but why bother when you know that the little bit of equity that is there will probably be gone by this time next year.
Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
15y
I was reading that if you don't know how to do houses with little to no equity than you are living a ton of money on the table. But not too sure if it's really worth all the hassle or not.
I found an article and a video on it that covers more on it if anybody wants to know. ( it also mention short sale method in article)
Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
15y
Another quick one, house must have AT LEAST 30% equity in it prior to make a deal correct?. Do you simply base your answer on the seller and assume that is correct, or is there a specific type of paper work you have to see proving how much they owe on the house?
Portsmouth, OH · Member since 2009 · 198 posts · 54 votes
15y
Hi Matt,
If you're going the short sale route you'll have the homeowner sign a letter of authorization which will allow you to speak with their lender. The lender will provide you with the payoff amount so you'll know the true amount owed.
Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
15y
Ok thanks Alex. As far as wholesaling goes, how important is it to know the equity and how much they owe on the house prior to making the deal? House must have at least 30% equity is that correct?
Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
15y
Question: What determines exactly if it fits shortsale criteria or wholesale criteria? How do you know right off the back if it's going to be a wholesale deal, or a shortsale deal?
I know if they owe, anywhere more than what it's worth it is automatically shortsale is the best you can do, or if they owe just about what it's worth it's a shortsale deal. But other than that how do you determine if the house is a short sale or a wholesale? How much equity must be in the house to know that it is a good grab as a wholesale, as compared to if it's just gonna be a short sale?