All Forum Posts by: Ellis Thurman Jr

I’m fairly new new to wholesaling. I’ve been at it about two months. This form of marketing I haven’t tried and I haven’t got any deals with my current marketing campaign (Craigslist, bandit signs, and direct mailing.) I’m looking to learn and tap into anything I can do I can get that first deal. This is a very informative post. I will research these techniques more and implement immediately.

So, if motivated seller doesn't have the equity to pay off their mortgage then we have a no deal because the lender would still have interest and a first lien on the house.

Then, at the point would be when to consider a lease option?

@Jason D.

It’s all good. Equity is what the seller adds to their home for paying there mortgage on it each month. I get that. Correct me if I’m wrong, I am a newbie. 

So, it’s more about the principal balance of their mortgage that will make or break a deal and not the equity in the House their motivated to sell?

Thanks for the input, so....

For the sake of easy math, motivated seller house ARV is 100k. I'm not paying more than 70k dictated by the wholesalers formula. Repairs will cost 20k and i want to make 5k off the deal. I offer motivated seller 45k for his/her house.

Now, given the numbers how much equity would be needed to keep these numbers like it is....(assuming 100% free and clear) How much equity would dictate using a more creative approach (lease option, etc.)? 

This is the part I'm not clear on. No guru cleared this one up for me. 

@Jason D.,

I’m trying to get an idea of how it would work Incase I get a lead that has an issue.

If a house is worth 250k and they got a mortgage for that amount and there’s only 100k equity in it, how could we make it work or will it work. 

What would be the least equity a wholesaler to take and make it into a deal taking into consideration 65-70% ARV - the repairs.

I haven’t actually got a deal yet and have no mentor but I’m trying prepare and think ahead of how I could handle a situation like this when it comes and I’m sure it will. 

Thank you @Michele B.,

What is the sweet spot for a wholesale deal beside the obvious (free and clear)?

@Ned Carey

Yes. That's who it was. 

Good Morning,

I have a question. Say your doing a wholesale deal and let's say a lead has about $150,000 in equity and has a principal balance on the property of $100,000. Is this still considered a wholesale deal and could that situation be handle to make it a wholesale, or, would this be disqualified as a wholesale and qualify as, say, a lease option?

Thanks.

Thanks for the feedback guys,

@Karl B.

That’s what I’m current working on now. I purchased an audio book from a bp author that mentioned exactly the same thing. Seeing that I have my website up with up and accumulated about a dozen and a half cash buyers, I’d offer them buyers and act as a bird dog until I can actually get a deal under contract. 

I’m currently in real estate agent school as well so I will also be able to get accurate comps as well. 

@Ned Carey

I attended an REIA meeting at the Sheraton in Towson and the speaker there (a commercial real estate investor) advise the same when purchasing commercial properties. One mistake in due diligence and no reserve is a possible recipe for disaster.

Playing the Long game fellas. I’d like my circumstances to allow for some creativity. However I’ll respect the process. 

Thanks again for the imput.

Hi. 

It looks like your already a realtor so that could be a lead for since they don’t seem interested in selling at a “wholesale” price.

They don’t seem motivated enough, however, that don’t mean that they won’t be a month from now. Always follow up, they may call otherwholesalers around and find that all are offering wholesale prices for their home. Depending on if you developed rapport, they may turn into a deal. 

Lastly, you can always turn it over to an real estate agent if the prospect want this house sold at fair market. It’s always good to develop a relationship with an agent for like expired listings, as is, and/or short sales.