Can I do this deal?

A gentleman is getting divorced and wants to sell his home, it’s a fixer upper. He owes $100,000 but the house is worth $150,000, Is it possible to do a wholesale deal if the owner still owes on the home? if so,
how do I structure this deal and what should I offer? thanks in advance.


 If the Gentleman getting a divorce has no funds to add to an offer for less than $100k then the offer probable can not be made for less than $100k as the lender is not likely to except a short sale on the property unless you can legitimately prove the home requires more than $50k in repairs if FMV is in fact $150k.

Now with that said if repairs are say $10k then you could probable reasonable charge and get a $3k to $5k wholesale fee (or assignment fee) for the property.

If there is only one owner on title or if both owners (Husband & Wife) are being reasonable and ammicable about there divorce and willing to work together I would structure a “Subject too” or a “Wrap” with no money down for a term of 18 months, take over there existing payment and assign the financing and property over to another investor for the $3k to $5k fee plus any escrow cost’s and fee’s to aquire from the divorcing parties.

This provides temporary financing for the end buyer to walk in, rehab and resell or refinance out the $100k balance owed against the property! My guess is your escrow to aquire cost’s you less than $2k for both parties. You can go into a title company and write and sign simple escrow instructions to aquire the property “AS IS” without a contract provided all parties are in agreement and close in less than two weeks!


Thanks, I’ll let you know what happens.

I agree with the 1st reply to this msg. You need to find out mow much for repairs, and if you figure the arv at $150k by 70% ltv, it comes out to around $105k (not including repair costs. It would be tight, but you can do it and make an decent fee. How are you coming up with the property value?

I also think if you try either Subject-to, Owner financing or Lease Options, it may not work if the mortgage stays in the homeowners name. As in some divorces, one of the people may or may not wind up keeping the house. But if they’re having to divide up the assets and they are basically forced into selling, then they have to sell it.