Wholesaling Potential First Deal

[Elmer Lee]

Hello!

I potentially have my first wholesale deal and I need some advice.

A motivated seller contacted me indicating he is ready to sell at a significant discount as he and his partners no longer have time to be landlords and doesn't want to have the home listed with an agent.  There are tenants in the property. 

Here are the details:

Purchase price $150,000.00 but seller is willing to negotiate

3B/3Bath - No garage

1st and 2nd Mortgages balance of $170,000.00.  He indicated the mortgage payments are current, fixed interest rates.  He is prepared to bring $ to closing to payoff mortgages. and taxes are current (I pulled taxes)

I pulled some comps and similar homes in the area have sold for $89,000.00 and $109,000.00.  Zillow estimates the property to be work $199,000.00

I'm scheduled to visit the property tomorrow.

Any advice, Ideas?  Anything else I should also be looking for or how to structure the deal?

Your help is much appreciated!

[Larry Turowski]

@Elmer Lee First, pay no attention to Zillow estimates.  Second, when a seller says they are willing to sell at a significant discount, that usually means 10%.  That is not significant.  Third, his discount is off how much he owes which sounds like at least $60K more than it is worth, so it is still way over priced at $150K.  Fourth, you do not want to pay what it is worth.  If it is worth $110K you need to get it at $77K or less.

It doesn't sound like a potential deal to me.  But it is all a good exercise for you.  Keep going after them.