2nd post - thanks for reading
i spoke with a potential investor today re: a property i hope to have under contract this week.
gave him the particulars = very good deal for the HO and a very good deal for me (the wholesaler)
he jumps into the conversation with an “oh no, joe!! thats called equity stripping!!”
“it’s illegal, it’ll come back to haunt you, the HO can go after his equity even after the deal closes!!!” etc… blah blah and on and on and on.
after his rant i calmly explained how much of a benefit it would be to the HO to save the property from foreclosure, cash him out, etc…
deal in a nutshell:
$61k owed, $200 - 228k comps ARV, cash out HO for $40- 50k, i make 10% on the ARV, investor buys property at approximately 58% LTV
what’s this guys problem??
is his way of thinking, regardless of investing strategy, obsolete? or am i being a little too aggressive?
thank you ladies and gents in advance.