All Forum Posts by: Account Closed

This is for future reference, just wanted to ask what you guys would do.

I'm currently working on getting my real estate license so I can get access to the MLS. Let's say I come across a deal where a person has a home that's worth $300,000. This home has all the works: the neighborhood is fantastic, no issues (not even cosmetic), a huge home, everything a family could want. Motivated seller has a hardship and is willing to give you the home for $150,000.

This is what I'm asking:

Coming across such a deal, should I flip to an investor as a quick wholesale? Maybe make $50,000 on an assignment fee?
OR
Should I put this property on the MLS and see if I can get closer to market value?

The reason I ask is because my mentor told me he made $60,000 wholesaling on a deal just like this. But I was thinking to myself, "Why not just put it on the MLS at market value?"

The only reason I'm thinking it would be better to wholesale is because you only have around 30 days on a contract to sell a house and selling one for $300,000 to a cash buyer just seems a little out there. Sorry for making the post so long, but what would you do in this situation?

From what I understand, Phil, if you can buy the house for enough money to pay the mortgage, you can own the house. If the mortgage is $50,000 and you pay $55,000, the mortgage company gets paid first and the seller gets what's left afterwards. Roughly $5,000, minus whatever interests involved. I mean you couldn't buy a house for $10,000 when it has a $50,000 mortgage, but as long as the mortgage is covered, you could pay $50,000 and the seller not get a dime but get to walk away without bad credit.

Thanks for the help guys! Answered my question perfectly.

Okay, I was just making sure. And not to throw out numbers again or to confuse anyone, but I just want to be 100% positive.

Example:

Woman has a house with a market value of $100,000. The house has a $50,000 mortgage. She wants to move to California. I tell her I'll give her $60,000 for the home so she can get rid of the home and have a little money to start in California. She agrees.

So, I got the home for $60,000, she pays off the mortgage and gets an extra $10,000. I find a cash buyer, assign him the contract for $70,000.

So at the end of everything, I make a $10,000 profit off an assignment fee, she gets her mortgage taken care of and an extra $10,000 as well, and the cash buyer gets a $100,000 home for only $70,000. Right?

I thought the mortgage becomes yours since you're buying the house... Like if you bought a home for $50,000 and it has a $10,000 mortgage, does it make the total investment $60,000? Or simply $50,000 and the seller has to put $10k away on the mortgage? Might sound like a dumb question but please keep in mind I'm new to this. Haha.

Doesn't it depend on how the contract is written out? I haven't made an offer on a house, but I'm also a wholesaler and would like to know if there is a way I could word the contract being that (I'll use his case as an example) the $51,500 is an offer but the mortgage company must be paid off with the $51,500?

My buddy just put a house under contract and I think he really messed up, I don't want to tell him to get out of the contract though unless I know for sure.

Details on the house:

Market value: $68,990
Under contract for: $51,500
Mortgage: $30,000

Is this a bad deal or what?! I'm pretty sure if he gets the house for $51,500, add in a $30,000 mortgage, he's under contract for a total of $81,500 for a house at market value for $68,990?!?!

Even if the ARV value is $100,000, I just feel like the numbers are too close and it's too much of a risk. Any advice or comments? I don't want to tell him to get out of the contract because I am new to this, but I'm pretty confident that this is NOT a good deal, especially since he is just a wholesaler.

If it had been me, I would have tried to establish an ARV before anything. This person didn't seem motivated either. If he/she would've taken $40,000 or less for the house, that's when I would've jumped on it. But I just don't think this is a good deal. Am I wrong?

By the way, he wants to sell it fast for quick cash, not rent it out. Please keep that in mind when you answer. Thank you!

I'm new to the investment of real estate but have what I think to be a great wholesale deal.

Stats: $15,000 owed in mortgage, market value is $40,000.

I talked to the woman who owns the property and she said she's willing to just give it to me for $20,000. She's moving to another state and can't until she sells this, so she's desperate.

My question is, it's simply a number's game, correct? If I put her under contract for $20,000, and assign the contract to a cash buyer for $30,000, I get $10,000 profit, right? When I assign the contract I'm making sure it's worded to where the end buyer takes over all interests, rights, liabilities, etc. The $10k is simply known as an "assignment fee"? Just making sure guys, any help is appreciated!