possible deal?

just started wholesaling. got a lady who owes 180k , the house is worth $220k , shes very motivated but not very interested in leaving financing in place to buy subject to. house is in great shape. she said she would take $175k and bring cash to closing. is this a possible deal? was thinkin about gettin it under contract for 175k and market with bandit signs for $185k

We need to know more information:

-why is she selling?
-what does she plan on doing with the money when she sells?
-how much are the combined monthly payments?
-what are market rents for that neighborhood?

I can tell you for sure that in my opinion this won’t make a good wholesaling type deal. She has to either accept some sort of payments deal with you, or she can call you back when her motivation is higher.

My 0.02


We don't need any more information, you said it all!

$220,000 - FMV
$175,000 - Purchase price
$45,000 - 20.45% discount

No deal as a wholesaler you need to buy at 30% discount minus any repairs, rehab, etc.

The only time I might pay a little more in a contract is when I have an end owner occupied buyer who is pre-approved and I make a reasonable spread. If you are depending on selling to a fellow investor it must be 30% discount or more!


cool thanks guys, the daughter was livin in house rent free so she was a real you know what when i went over to look at house, so on to the next one!

why is she selling? Does not matter
what does she plan on doing with the money when she sells? Does not matter what she does with the money.

Why you ask a question like that?

LOL@real estate seller…too funny

real estate seller: Are you saying it doesn’t matter to you WHY the seller might be selling? Interesting.

Question: Is it possible ‘real estate seller’ is getting better and more prosperous deals by NOT asking the seller WHY they are selling? Can’t wait to hear the answer.

In regards to me asking the seller what they plan on doing with the money after they sell, I personally ask this for a few reasons. One, I found the more I personally understand about the seller, the more deals work better in my favor. Another reason is, what if the seller has no mortgage on the property. Selling outright could be a huge capital gains situation for the seller come tax time. Most sellers don’t think of it until the transaction is over. A lot of sellers for example with no mortgage will consider cashing out, even when they are financially ok because they think its best when in fact it may be better an more efficient to just kick back some cash to them on another type of deal. It is possible (and has happened when I explained this to sellers many times in the past) that we can work something out where I turn the house into an investment for them and kick some money back to them each month that they can rely on for the next several years while I buy the house over time from them (Owner Financed deal). Some buy it, some don’t, but it doesn’t cost me anything for asking the question. Example, home is owned outright, expenses with taxes/insurance/utilities comes to 500/mnth, the owner accepts 400/mnth in kick back money, I charge my buyer in that situation 1500/mnth on some payments deal, which creates 600/mnth cashflow for me! This is why I ask the question, it gets me thinking whether or not there are more possible deals that can be done on a particular house.