Friend with no equity calls...Can I help?

[Cory Baker]

Two things: 1. I finally got my first wholesale deal done! It was a joint venture (with some Local Active Investors:Key) and I got 20% of the spread for me and my business partner! Whoo hoo! My kids helped me find it while driving for dollars! We celebrated by getting tickets for the Circus! But, That's for another time.

2. I just got a call from a friend. His mortgage payment is going up $500 in about 3 months.
He owes: about 19k on first and about 85k on the 2nd, a HELOC.

I was thinking wholesale? Subject to? Owner Finance? Hmmm. 

There is a tenant paying $850/ mo. on month to month.  Rents range in that complex from 900-1100. So, he's a little low.  His cashflow has been $75-100/ month.

Breakdown of payments: About $370 (loan 1)+ about $250 (loan 2)+ $188 HOA= $808/ month. He says $750-800/month.

ARV in the area brings up 105-110k. New A/C about 2 years ago. Only carpet and other minor cosmetics needed.

The payment is going to be about 1300 and even at high end rent of say 1100 he'd owe 200 more/month.
He's not sure that would fly with his good tenant.

He's done some checking with Realtor's and even the $2500 flat rate type is too much. So, he called me!
I'm thinking of a low wholesale deal.  

Structuring where he agrees to sell it to me with 21 day inspection period and 40day close and small emd maybe $100-500.

Then selling my equitable interest through a broker. (Our state allows that.) And splitting with the broker the profit. 

If I can't get it done in 10days I give the house back. 

If I can get it for 105k I think that gives my friend about 1500.
If I get it sold at 110k I have a 5k spread to split.

How would you stucture the deal. As a wholesale deal there's not much there. 

But as a micro-wholesale it might actually help my friend who's looking at a big headache.

To your Success.