High equity wholesaling

[Ivan Casale]

Okay so if possible if someone could explain this to me Barney style. I’m a new wholesaler to be but I’m having a tough time for some reason trying to wrap my head around high equity owners and why people like to target those kinds of people. I guess I’m just not understanding the whole aspect of equity in general. This information would be greatly appreciated!

[Yoann Dorat]

@Ivan Casale it really comes down to your exit strategy:

If you’re into creative financing then low to no equity list are the best, there’s very little competition from other wholesalers as most of them don’t know how to structure it.

However If you’re trying to wholesale the deal on a traditional cash offer basis then you will have more chance to get a discount from a high equity seller, the fact that they got more equity means they have more room to negotiate.

That being said, Keep in mind that high equity doesn’t mean distressed, you better stack them with other distressed filters (bankruptcy, divorced, tax delinquent…). You can also filter by how long they’ve been holding on the asset, someone who owned a property for 20yr or more probably has purchased it for significantly less than what it’s worth today.