Wholesaling for beginners

[Giuliano Solger]

Hey guys,

This may be a dumb question but what do we do if we are trying to wholesale a home with a pre existing mortgage?

[Barry Pekin]

@Giuliano Solger,

Since this is a "How do I" or "What if" scenario, I'm assuming you don't have a deal in the works yet.

Before you get into the nitty gritty of things, I recommend starting to network with local investors.  You're going to want to have several lined up who are truly in the market to invest.  This is WAY easier than you think.  If you just get started, you will very easily start building up a list.  Once you have them, you will not only have that piece of the puzzle, you will have a piece of your system in place which will boost your confidence.  As you do that, keep working on your team (title company, realtors, etc.)

To answer your question more directly, most houses will have a mortgage in place.  It's part of the cost.  If someone owes $100K on their house, and you can only offer $50K, that's a harder deal than if you were able to offer $200K.

Real estate allows for a lot of creative solutions, too.  As @Renada Guyton, mentioned, a Subject-To is always an option.

And when you start looking at a deal, be sure to run the numbers.  You can't make any decision without good numbers.