All Forum Posts by: Mark Durham

I've put many properties under contract with $10 EMD.

In a perfect world, where everything goes as planned and there are never any Murphy's Law situations, a wholesaler wouldn't need financing for a property because a wholesaler usually doesn't plan to purchase, hold and/or rehab the property. Unfortunately, that world doesn't exist, so it's good to have backup plans & funds available for the times when Murphy visits you.

It'd be hard for me to pass up the full 15 years of Owner Financing, which will happen if you refi. 

I'd still try to negotiate a better deal with the owner (maybe annual pmts.).

Coming up with $100K for a long term isn't easy. How much can you get on a Home Equity LOAN (not HELOC)?

Does this family member know you don't have the $100K? If not, tell him/her & see if you can work out a better deal. 

How long will they carry the $300K note?

Ask owner if he/she will Seller Finance.

57 - 25 = 32, so you'll have 32K in equity. 

What exactly do you mean by "usable equity"? 

It may be hard to find a lender who will lend you 32K on that house, whereas, if you find a buyer who will pay you 57K for it, you will make 32K (minus expenses).

IMO little to nothing down is always a good idea. Using OPM is one of the keys to building wealth in real estate IMO. 

First of all, do your homework better before you put under contract so this doesn't happen often. Second, don't offer so much so this doesn't happen often. 

Did you use the MAO or other formula?

When it does happen anyway, I've found it's best to just tell the seller the truth - you thought it was worth more than it really was & you couldn't sell it. Tell them you can offer $X if they're interested.

Private & Hard Money is creative financing. Check your local REIA(s) and REI Meetups. They're out there.

Learn creative financing strategies/techniques (esp. Seller Financing & Sub2) then focus on finding MOTIVATED sellers.

Also look for Private Money and other sources of OPM.