Do I have a deal?

[Matthew Newman]

HI Everyone,

I just started marketing for motivated sellers for the first time about a week and a half ago and I have been in talks with what I believe to be a motivated seller.

Here is the story. He owes $600k on his existing mortgage on a condo in Los Angeles. Zillow and E-appraisal have estimated the value to be around $840k. I had my real estate friend pull comps on the property and it said that the RealAVM is between $475 and 749K. In August, an apartment one level down from his sold for $746k. I also found on the report that it was in default of 57k on 10/3/2012 and that it is in preforeclosure. He is looking to sell for $700k but is negotiable.

If I want to try to wholesale this property ideally I would like to offer $490k based on a $700k value of property, but A) he wont go for it and B) I dont think the bank would allow the deal.

I was thinking about potentially informing him of a lease option. BUt also I was wondering if a Subjec to would work as well.

I have decent knowledge of how to put together a lease option agreement, however I am shaky on terms and asking price.

He seems like he would be in a good candidate for a Subject To, but I really am not familiar with how to structure those at all.

Does anybody have any insight for me?

Thanks.