Just had a question what do you do if a private seller still owes on the mortgage to their house you want to make a deal on to wholesale ?
The mortgage will have to be paid off, of course.
Now if they owe more than the house is worth, then you can do a short sale and you would be the buyer, who in turn will flip/wholesale the property.
Otherwise if there is enough equity to do the deal regardless, you can write an option contract, find a buyer and wholesale/flip the property to the end buyer.
So if they owe on the mortgage do I sell to another investor or end buyer at a price that will cover the sellers mortgage and my assignment fee ?
The selling price is determined by the market, not by the underlying liens on the property.
What are the number ?
Answer these and I will help you.
!. What is the house worth ? Get a CMA done by a realtor or someone who knows the market.
2. How much is owed?
3. Is the seller motivated?
Shortsale king thanks for the help, right now I do not have a wholesale deal, I’m doing the marketing right now to try and get a wholesale deal. Once I get a deal I would like your help with this particular situation.
Peezy you need to give more info. However, generally speaking the mortgage of course will have to be paid off. So, it depends on how much is owed on the mortgage in relation to its ARV.
Your scenario is very broad, if the property has a mortgage left of 20k, and its worth 150, uh yeah it is a wholesale deal and will go quickly. If the mortgage owed is 75k and its worth 100k, then go to the next one. So, it depends on the numbers.