Wholesale question!!

[Lian Chavda]

Alright, so i've done my research, spoke to a few investors (still have a lunch meeting with a mentor coming up), and read through a few forums. But here's my question...

When looking for a deal and potentially signing a contract, what would homes that are upside down in mortgage, owner still owes a nice chunk on the mortgage, any kind of taxes that has not been paid or a lien take place into place? Most forums or "wholesale examples" I read are as simple as finding a property that the owner is willing to sign i.e. $50,000 and sell contract to investor at $60,000. Does that seller own the title to the home? Do they still have a big loan on their back? Taxes? Etc?

One more thing to add a little off the subject is how to get the seller to agree that you will be making a profit on this transaction of the contract to a motivated buyer, and getting the buyer to agree that you're getting a profit as well. Thanks in advance BP world!

[Ray Mulli]

@lian Chavda

Wholesaling is about contracts and not properties. So you get a property under contract and then you sell(or transfer) your interest in that contract to someone else in exchange for money.

The seller has to be distressed ,meaning you are solving a problem and due to the fact they are distressed you get that price reduction. :)

You then create value when wholesaling the property by marketing it to rehabbers etc.

When communicating to rehabbers it's essential that you talk about the property in terms of ARV(after repair cost) and rehab dollar estimate (typically $15K 20K or higher depending on location, property etc).

Check out the podcasts and a book by J Scott on flipping houses (available here under LEARN) that is essential in this business.

Welcome.