All Forum Posts by: Michael Rajnherc

Originally posted by @Brett Goldsmith:

This would be a short sale. It sounds like you are going about structuring this incorrectly as there are certain guidelines that need to be met per most investor guidelines. Pm'd you. 

If you have the opportunity would you be able to reach out so that we can discuss some of the guidelines? I have found myself in a similar situation as the original poster. Thanks in advance.

@Chidi Weah study rehab costs and ARV. Investors expect accurate representation when you send information regarding the contracts you want to assign. If they can’t trust your projections why would they trust you to close the deal?

Awesome podcast

@Lucas Ziegler good job taking the steps! Are there cash flowing deals on the MLS there?

@Jason Todd I’m not sure what the best approach would be but I’m intrigued and would like to follow this post as it goes. Would you be able to buy the property subject-to and then with the additional equity in the property take a second mortgage to pay her the 19k? I Look forward to hearing others thoughts.

Hey @Odie Ayaga 

Thanks for the input. I decided not to approach the deal with a wraparound mortgage just because it was too tight of a margin to wholesale. The owner only had about 20k in equity in a home that had an ARV of about 75-80k. I appreciate the advice!

Mike

Hey guys, 

just saw your comments and would love to connect.  I have recently started wholesaling as well.

Ideally, to wholesale, I would probably need to get it cheaper than $60,000.  I'm not positive how much an investor would be willing to pay in Woodbury, NJ for a rental (and should probably hammer this down more), but I found the house to be just break even (after 5k in taxes, vacancy, repairs , etc.) at a $60,000 purchase price and assumed $1,100 for rent.  Does that seem about right?   I was thinking of something along the lines of a Wraparound Mortgage that has the initial $60,000 then having different options for the sellers depending on how much cash he wants now.   With the above rental information - I imagine I'd have to be very creative with the wraparound in order for it to work.  But for learning sake let's say -   For example, if he wants $10,000 now then I would offer along the lines of a $70,000 wraparound only for like 3-5 years (60,000 first mortgage with 10,000 wraparound mortgage over 5 years) vs if he wants nothing down then I would consider something like the above with an interest-only wrap around. I know that was a lot, and not super specific numbers, but I would definitely be willing to dive into those numbers deeper if that logic is sound.  Thanks again!

Hey @Adam Stacey , 

Thanks for your response!  How would a seller financing option work in this instance if he owes 60k.  Is this something you have experience in?  I'm not sure how to approach it when it appears there is such minimal equity.

Would that just be like a wraparound mortgage?  Thanks!  

Mike

Hey thanks for your response @Joe Villeneuve !

Well, I was thinking that it would have to be a Wraparound Mortgage in order to complete the transaction.  I may be totally off here on my thinking, and if so, please continue to show me where I'm missing something.  I am using this as much as an opportunity to learn and understand the creativity that can be in a deal as much as a chance to wholesale/invest.

Ideally, to wholesale, I would probably need to get it cheaper than $60,000.  I'm not positive how much an investor would be willing to pay in Woodbury, NJ for a rental (and should probably hammer this down more), but I found the house to be just break even (after 5k in taxes, vacancy, repairs , etc.) at a $60,000 purchase price and assumed $1,100 for rent.  Does that seem about right?  

I was thinking of something along the lines of a Wraparound Mortgage that has the initial $60,000 then having different options for the sellers depending on how much cash he wants now.  

With the above rental information - I imagine I'd have to be very creative with the wraparound in order for it to work. 

But for learning sake let's say -   For example, if he wants $10,000 now then I would offer along the lines of a $70,000 wraparound only for like 3-5 years (60,000 first mortgage with 10,000 wraparound mortgage over 5 years) vs if he wants nothing down then I would consider something like the above with an interest-only wrap around.

I know that was a lot, and not super specific numbers, but I would definitely be willing to dive into those numbers deeper if that logic is sound.  Thanks again!