Wholesale Subject To Deal - Yes or No?

2 Replies

Hey all,

I'm in talks with a wholesaler who has a seller willing to do a subject to deal. The wholesaler is asking for 20k, which covers 'assignment' fee, AC repair.  It also appears the title has a lien on it, so I imagine that would need to be taken care of as well - but the wholesaler hasn't disclosed it to me yet. 

#s

4bed/2bath 1575 sq ft, 3 car driveway.

Current mortgage - 103,5
Current tenant has been there 8+ years, with rent being 1250. 
Average sale price in the area is 130-140k.

Wholesaler negotiated with the owner that the existing tenant can't be evicted unless for obvious reasons (payment, damage, etc).  This bothers me because I tend to lean towards lease-option sales for sub2 homes, I imagine I would just have to wait out the lease, which I asked to see a copy of. 

TLDR: 20k for a property cash flowing $262, which the possibility of 20-40k equity. 

Would you? 

If you are going to pay $20000 on a sub to deal with no cash flow pass it by If you have $20000 you can find plenty of properties in your area that you can buy with bank or even owner financing at much better market rates without a long term tenant ,---find a new property  

Originally posted by @Steven Picker:

If you are going to pay $20000 on a sub to deal with no cash flow pass it by If you have $20000 you can find plenty of properties in your area that you can buy with bank or even owner financing at much better market rates without a long term tenant ,---find a new property  

 That was my exact thought, figured I would post it to the group to see if there was an upside I was missing.