Potential Deal with 100% Equity

[Brandon Sturgill]

Never been in this situation before, but I have a wholesale deal that is owned outright...is there a best approach to making this work out as favorably as possible? In the interest of full disclosure, this is my first wholesale deal...any advice is much appreciated. Thanks in advance.

Cheers

[Russell Ponce]

As a wholesaler thats what you want, a deep equity situation. I would make a cash offer, whatever he sells it for is what he will pocket so I think that makes the offer more enticing. I know people like to get a deal on terms like seller financing but I just keep the offers simple and straightforward.

[Brandon Sturgill]

Thanks, Russell.

[Robert Leonard]

Brandon Sturgill the seller will have taxes to pay on a cash sale of the property, so it's not "all going in their pocket."

You would do well to also present a seller financing offer. A property that comes with financing will be pretty easy to wholesale or a good way get your cash flowing rental portfolio started!

[Brandon Sturgill]

Originally posted by @Robert Leonard:

Brandon Sturgill the seller will have taxes to pay on a cash sale of the property, so it's not "all going in their pocket."

You would do well to also present a seller financing offer. A property that comes with financing will be pretty easy to wholesale or a good way get your cash flowing rental portfolio started!

 Robert, what would the approach be on seller financing since there is no mortgage?...simply assume title to the property for a set monthly payment? At that point, I would be contributing my own cash for the rehab and place a tenant in the property...

If you have some references to more content on this topic you could provide, it would be much appreciated.

[Bradley Benski]

@Brandon Sturgill 

I believe you start the conversation on seller financing by asking what he's going to do with the money.  Then you add "Would you like to get a little more money?"  followed by "Would you offer financing  where I pay you every month..."

This BiggerPockets Podcast 77 discusses this towards the end of the podcast and 

[Nathan Paisley]

@Brandon Sturgill Imho I wouldn't focus on anything other than just a clean n clear wholesale deal. Especially if it's your first one. What you need to know is the sellers motivation. Do they even want to sell? I've seen plenty free n clears. Most of the time they want top dollar. Hopefully in your case they want out asap.

Did they contact you or did you directly contact them? The more info the better we can help.

Nathan

[Brandon Sturgill]

Originally posted by @Bradley Benski:

@Brandon Sturgill 

I believe you start the conversation on seller financing by asking what he's going to do with the money.  Then you add "Would you like to get a little more money?"  followed by "Would you offer financing  where I pay you every month..."

This BiggerPockets Podcast 77 discusses this towards the end of the podcast and 

 Thanks, Bradley

[Brandon Sturgill]

Originally posted by @Nathan Paisley:

@Brandon Sturgill Imho I wouldn't focus on anything other than just a clean n clear wholesale deal. Especially if it's your first one. What you need to know is the sellers motivation. Do they even want to sell? I've seen plenty free n clears. Most of the time they want top dollar. Hopefully in your case they want out asap.

Did they contact you or did you directly contact them? The more info the better we can help.

Nathan

 Hey, Nathan. This is a house in my neighborhood that was acquired after mom died... The house is owned free and clear and the seller is quite motivated to get it off her hands...it has all the desired characteristics as a clean wholesale deal...I like the idea of keeping it as simple as possible...but I also like seller financing as a future strategy.

[Nathan Paisley]

Is the house vacant or does the daughter live in the house? Are all the belongings still there? I would get your comps in order and use the 70% rule less repairs and your fee. Thats your price but REMEMBER never give your number first!!!!! 

Listen to the Podcast with M. Quarles in it. It's creepy but true lol. 

[Richard C.]

Don't talk down to people.  "Would you like to get a check every month?"  Why yes, yes I would.  That is why I will take the lump sum I am paid at closing and invest it in something else, that will provide me with a check every month, and that will be under MY control, not yours.

People know what seller financing is.  Just ask them if they will entertain the thought.  I would, for one property I am thinking of selling.  But be aware that that financing will be a couple of points above what you would pay a bank, and I will be getting every penny of my asking price.  

Nothing is free in this world.