All Forum Posts by: Brandon Kargol

Sorry, I meant that the property gets listed for auction on October 23rd 2014. That's my end date to make this deal happen. I know there is the risk of the bank calling the loan due on a sub2, but from what I hear the risk is low. I have no experience with Sub2's and very limited knowledge on them. Is there a way for this deal to happen?

Here's so updated information…

Seller's payoff is at $79,113 with $5,907 needed to bring the mortgage current. Again, the ARV of the property sits around $125,000. Needs $20,000 in repairs/rehab costs. Seller is willing to do a mortgage wrap, but how do I go about doing the wrap? Do I have to contact the bank and work that out with them or does the seller have any control over this? The property gets listed for sale from the bank on October 23rd so I have a little bit of time to work this out. This will be my first wholesale deal and I feel like I'm experiencing everything that could possibly go wrong when wholesaling, yet I still see dollar signs because I have a VERY strongly motivated seller.

Here's additional questions,

1. Am on the right path with the way I am pursuing this deal? The house doesn't have the equity for a wholesale in my market. A "Subject To" or Loan "Wrap" is the the only option I see. 

2. To do a loan wrap do I need to work that out through the bank or through the seller as I will be purchasing the property at the loan payoff price? 

3. For my exit strategy… I will also seller finance this property to a fix and flip investor or to a homeowner looking for a property in need of some repairs. 

Any more insight from the BP community would be awesome as I feel a little lost on where to go from here!!!

Additional Info... The seller is a little behind on payments, but has a loan payoff of roughly 76k plus or minus a few hundred bucks. She is still allowed to sell the property as llong as the loan payoff is met at closing. The sellers motivation is very high and willing to give me the property at the cost of the loan payoff, whether that be through a traditional wholesale deal or a subject to

I really appreciate all the feedback everyone. There was no counter offer but I had talked to the seller after I made my initial offer. The seller is willing to let me take the home for what she owes (76k). But with 20k in repairs that puts my end buyer at 96k on a 125k ARV Property. I wouldn't consider that a smoking hot deal, but maybe doable? Any additional thoughts?

Okay so here's my situation… I have a lead I made an offer on which was refused (not surprised). Here's the numbers.

ARV: $125,000

Repairs: $20,000

Seller Asking Price: $85,000

Seller Owes: $76,000

My Offer(which was refused): $52,500

I don't see anyway to wholesale this property as the seller owes about 60% ARV before 20K in repairs, but the seller is VERY motivated to sell and is willing to do seller financing for the cost of the existing loan. My question is this, i'm not the most familiar with "subject to" deals. Can someone enlighten me on turning this situation into a good deal? I know it can be done.

Thanks in Advance!

Do any of these recommended attorneys do double closes? Or assignment only?

@Paul Schuw 

I'm in the Fayetteville area. Are you looking into purchasing properties in this area? If so we should talk. I know the market well. 

keep us posted on the results Cierra!!!

Well that's person all preference if you ask me. In my state of north Carolina its much easier to just assign a contract. ideally you should have buyers that don't care about what you make as long as they are getting the best deal anywhere around. If you do a simultaneous close on a property your end buyer does get to see what you made, but that is after the closing. So like I said. It's up to you. There isn't anything wrong with always assigning a contract, but if you prefer to do a double close then you can go that route. 

I agree with Renee. If you want to run your business for a standard assignment fee then that's your call. But you may come across a situation where you get an incredible deal that you could assign to someone for say a 10k fee. It all depends. Also, if you're working with single family homes then generally a 5k fee is reasonable. But if you start going into duplexes or larger then 10k or even more (depending on the deal) would be reasonable.