wholesaling to a buyer who only qualifies for 80% of the purchase price

I know of someone selling a property for 35k. The property is worth about 100k. I have found someone willing to purchase the property for 80% of the apprasied value. Of course I can get the property under contract for the 35k, however, I cannot figure out how to structure this deal since it seems that my end buyer will need seller financing for the remaining 20% (seller second). Any advice??

Mr. Rehab

How is he getting the 80%? from a traditional lender? if so, the lender will most likely not allow owner financing for the remaining 20%. Traditional lenders may even question why the price is so low.

Why not find someone who is better financed?

If the repairs make sense why you don’t you have this deal locked up? You can find buyers all over the place IF you have a deal. If this is a deal you need to sign it up before its gone to the next guy.

Then you can worry about getting financing for your buyers (think hard or private money, or local banks), and finding a buyer.


This is a very serious deal.

There are no repairs…The property is occupied by a tenant.

The owner wants to free up the cash in the property and is willing to let it go for the 35k. I don’t have 35k myself, or I would have bought it already.

I wanted to try an assignment but I have been reading and it seems that everyone is saying that the banks won’t do this. The option thing probably won’t work because there is already a tenant in the property. I am trying to figure out how to translate my position in a contract into a nice profit.

Mr. Rehab

Sign it Up!!!

Stop with the negativity. Buy it yourself with a hard money loan, mortgage broker, private money from relatives or other professional people like doctors, lawyers, cpa’s, etc. Take credit advances on your credit cards to buy it. Partner with another investor on it and split the profits. Can you re-fi your personal residence and get a 2nd mortgage on it and use that to buy it?

You can’t translate a payday cause you have NOTHING signed up. Your telling me this is a serious deal. If so then why would you not think that a cash buyer would want to buy it? And before you say there are no cash buyers…trust me there are plenty. If you a deal the buyers will follow. You can assign contracts to cash buyers and even local banks if they are onboard with the transaction.

No repairs? Hard to believe but I’ll take your word for it. Even with some repairs of 10-15K its still a very good deal if your ARV is on the money. I can tell you this…

If you got it under contract for 35K and you wanted to wholesale it to me for 45 or even 50K, with 10K in repairs (you say none) I would be all over that deal and if I were a serious player I would find the money to buy that deal from you.

Deals talk. Sounds like you have one. Well…not yet anyways :biggrin

Sign it up!!!


Alright…You have inspired me…

I was just wondering if there was some way to structure this deal without having to raise the money myself…But, if this is what it takes then ok… I agree with you.

Mr. Rehab