All Forum Posts by: Mark Braun

All - thank you so much for the rapid responses. They have all been very helpful but I need a little more help (if you don't mind).  See below:

I likely need a little help with my math here so please help me if I need some adjustment.

• Comp Value: $200K
• Equity: $27K
• Loan Balance: $173K

Expenses:

• ARV (70% of comp): $140K
• Rehab: $40K
• Buyer Profit (30% above comp value): $60K
• Assignment Fee: $10K
• 60-day carry until closing: $3000 ($1500/per month)
• Wholesaler Final Offering Price: $27K (covers equity and all of expenses)

So, from this, I will close with seller for $27K. Here’s the BIG question: For how much do I offer this property to a buyer-investor? This is where I am stuck as the buyer has to cover the $173K, my $10K assignment fee and make certain he can cover the rehab, carryover, and achieve a profit. I am thinking I close for $183K.  Am I close?

Again, thank you so much for the help and understanding. VR, Mark (719.425.7852 or presinvesting at iCloud.com

Hello all-my name Mark Braun and I am new to BP and more importantly, investing (wholesaling).  Anyway, I undertand the basics of wholesaling but the one thing I cannot reconcile is who pays the balance of the loan once the wholesaler closes the deal with the seller?  For example, if a seller owes $150K on a $200K loan and I closed the deal for his equity, there is still $150K outstanding.  Who pays that?  The buyer-investor or the seller?  Thank you.