Now Ive been told that some of the (preforeclosed home) homeowners can walk away with some cash from a wholesale deal…Why would the buyer pay me 10% and pay the seller money also? Or am I missing something?
House is worth $100k. Wholesale price is $65k, Seller owes $30k.
seller “OWES” $30K? If they owe than they aren’t walking away with money… can you elaborate briefly
Just because they are in foreclosure, does not mean they do not have enough equity to sell and get some money back. So if they owed the bank $30k and they are selling it to you for $60k, and you are wholesaling it for $65k, they are still getting $30k at closing.
so basically I only want to wholesale properties with equity?
you need to know your buyers… In general, investors want properties at 70% of value - rehab cost. So if the house is worth $100k and needs $10k in repairs, then you need to get it under contract for $55k. $100k * 70% - $10k - $5k (your assignment fee).
Landlords may go higher than that amount, depending on the price range and rent income.
hey fadiz thanks for your brief explnation on this question it helped me out