Property has little equity...deal or no deal?

Question

Hi all! I am about to make an offer on a 4-plex 2 hours away from me. Though the owner is motivated, and the place seems to be in very good shape (minus a new roof), what the guy owes is probably about $30,000 more than I'm likely to offer. Now to clarify that, I'm a wholesaler, and I'm figuring on wholesaling it to a cash buyer. Is there any way to make this a deal? Would this maybe be an "assuming payments" type situation? Sorry if it sounds like a newb question, but I haven't come across this yet.
   Thanks for any and all ideas!  :mrgreen:

Jeffrey K. · Answer

There is no "helping" in this business.  There is always a winner and a looser.  Just hope you are smart enough to figure out which one you are.  Go after deals that make sense and donate money to the poor or something.

Joseph Ziolkowski · Answer

Well said Matt, that's how I feel as well. I don't want anyone ever walking away from me feeling like they'd been taken for a ride.

Nick J. · Answer

Joseph, I would be interested in this property.

Obviously it would be as a Sub2 property but I'm interested if you can get me all the exact numbers

Joseph Ziolkowski · Answer

Man harsh :) Obviously if there is no way that I can make it work than I won't bother, just wanted to see if anyone had any ideas as to how it could possibly be a good deal. Maybe put a new strategy in my bag of tricks.

Joseph Ziolkowski · Answer

No it's worth about 10,000 more than he owes (see previous post). I would have to offer him at least 30,000 less than he owes to make it a good wholesale deal, I THINK... hmmm... This is driving me nuts :)  I wouldn't even care about the place, but the seller is a friend of a friend, and I want to see if I can help.

Paul Beauchemin · Answer

If the property is worth $30k less then he owes, can you get a short sale?

Otherwise, sounds like you are betting on getting retail value.

Joseph Ziolkowski · Answer

Hi Jeff, 
  The property is only worth (at the very beginning stages of my research) 10,000 more than he owes. However, the units are all occupied by good tenants, and all seem to be in good shape, needing very little in the way of repair or updating. So I was just contemplating other avenues than pure cash buyers, so that I can still wholesale the thing and make both me and the buyer some money.

Jeffrey K. · Answer

You need to post more info on the property, but from the sounds of it, this is not a great candidate for a wholesale to cash buyer.  Is the property worth a lot more than he owes?  If so, why sell it to you?

Property has little equity...deal or no deal?

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