Motivated Sellers + Little to No Equity?

[Matthew J. T.]

If you find a MOTIVATED SELLER, that wants to sell the house because of there MORTGAGE is too high, they really want to sell the house, but has very little equity. Does this mean the house is not a deal automatically? I've already browsed BP and from what I understood there is nothing you can do , and no money to be made, other than a short sale.

Question: Wholesaling should only be with houses that have moderate to TONS of equity correct? If they seller is selling the house for just about what the owe, or has a mortgage that is more than the house is worth, or has little equity ( been there for only a couple of years), that is an automatic no no correct?

[Alex Hart]

Hey Matt,

You need the spread for wholesaling. You will most likely be selling to a rehabber and they will need that spread to make their profit.

If their what they owe fits into your rehab/wholesaling MOA, GREAT!

If what they owe is greater than your MOA, move on.