Deal or deal?

Question

Brian Gibbons · Answer

if the area is great and the house is great and the repairs are minimal

Walk through the property, get a real quote for repairs and to get rent ready

Offer him a lease purchase with his PITI being covered plus a little bit more

You must get a positive cash flow out of it or don't do it

Al Mcbee · Answer

If the mortgage payments are well below the market rents, sub2 would work. But the risks are many if you don't know what your doing.

Ken R. · Answer

Thanks for your input @David Chwaszczekski I realize the 15k-20k spread is no deal. I'm just wondering if there is creative terms option that is worth being negotiated before I pass on this potential lead. I'm learning that some REI deals can still profit with terms even when it appears to be little or no equity. Maybe this one isn't the one but curious if someone else can see something I didn't see. Thanks again.

David Chwaszczewski · Answer

@Ken R.  No Deal,  if seller is asking 240K and comps are 260K there is no money to be made (for you or buyer).   Especially if there are repairs needing to be done.

I love your ambition calling FSBO.  This is the hardest step in my opinion of finding deals as a wholesaler.  Keep it up and you will find a deal out there!

Ken R. · Answer

@Curt Davis Thanks for your input. You're right, that price would have to come way down for it to make sense. Not sure if seller is motivated enough to do that. I wonder if I should make an offer anyway? @Brent Coombs Thanks for your input as well. No, I don't have a buyer lined up. I didn't see a big enough spread. I was thinking maybe a subject to or lease option could come into play in a deal like this but I'm still learning about creative REI terms.

Brent Coombs · Answer

No deal. (Seller is not motivated, and my guess is: you don't already have your Buyer)?

Curt Davis · Answer

If they are wanting $240k for a home worth $260k, then there is no real deal her in my opinion.  If our looking to wholesale it then I would think you need to get the home closer to the $150k. If you wholesale it you can only really sell to a cash buyer and I am sure hey will be looking for a deal as well.

Good luck

Deal or deal?

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