How do you wholesale houses with little equity?

[Account Closed]

Like if you had a home that was (ARV) $100,000 from a homeowner who has only lived there for a year so very little equity.

[Bryan Hancock]

Originally posted by John Lindsey:

Like if you had a home that was (ARV) $100,000 from a homeowner who has only lived there for a year so very little equity.

Either:

1. You don't

or

2. You use their financing and write an option with a proper contract that you can assign to a new buyer. In Austin this is called a wholesale owner finance (or WHOF) or mortgage assignment

The new SAFE Act stipulates that you can't originate loans without being licensed so it is unclear whether or not this constitutes non-compliance with the law. The lawyers I have talked to are split on whether or not this is the case and it will likely need to be litigated to decide for sure.

You can pay a MLO to originate the loan for as little as $500 and keep your nose clean. This will come out of your assignment fee for finding the WHOF buyer.