Wholesaling with mortgage

Quick question if a seller owns money on the house can you still do a wholesale deal, how would that work, do I just subtract the amount owed on the price? Or if more is owed then the house is worth then what?

As long as you disclosed it to the buyer.

If the seller owes over half of what the house is worth, with the right negotiating skills, you can use that as leverage to get the property for pennies on the dollar. For example, you have a property with an ARV of $100,000 REHAB $20,000 MORTGAGE $50,000. Now by using the formula, $70,000 (70% of ARV) - $20,000 (REHAB) - $50,000 = -$10,000 …this puts the seller at 0. Offer him/her a $1000 or $2000. And then sell it to your investor buyer for $12,000. You can make a $10,000 profit on that. And then they’ll probably rehab and rent out the property until the property appreciates (to sell it).

Make sure you have enough investor buyers on your list who don’t mind taking over an existing loan! I feel that this is a tactic to use once you have quite a bit of experience under your belt.

hi, for example a person has his condo on the market listed as a short sale 60% below market value Listed for $200,000 but owner previously purchased it for $279,000 7 years ago with a 30 year fix, and can no longer afford payments, bank accepts highest offer, for example accepts my offer, will that bank make me hold on to it for 30 days with a $1,000 or $1,500 in earnest money, and sell the place on my own for $215,000 to another buyer…