A Seller with No Equity.

[James Danchus]

BP,

Real quick question regarding a D4D lead that I got a hold of. The owner died in February. Before that they refinanced the mortgage. The lady I spoke to (the grand daughter) said her grandma just wants to sell for what they owe, which is around $171K according to her. Zestimate on the house is $175K. She said it's a 2 level house even though it looks like a ranch from the outside.

My question: Do I have any strategies available to me to wholesale this house? I'm pretty sure I don't but I have no idea what I'm doing so I figured I'd ask.  

[Jim Viens]

I also use Zillow for reference but when it comes to determining ARV I filter for properties sold in the last 6 months and look at how much they sold for. If it's not immediately listed by the yellow dot then you can go to the property and get a good idea of what it sold for by looking at the "Price/Tax History" section of the listing and seeing what price it was at when taken off the market.

A "Sub-2" deal is where you get the property under contract "Subject To" the underlying mortgage. Essentially you're getting a deed putting the property in your name and taking over the payments on the existing mortgage while leaving the mortgage in the seller's name. It can work out well if the seller has a fairly low mortgage payment and the rent rates are fairly high. In this particular case you probably don't have a deal because just the principal and interest payment on $171k at 4% is going to be over $800 so you may have to have $2000-$2500/mo rent to satisfy the numbers for any investor you would wholesale to.