All Forum Posts by: Nicholas Renshaw

Hi. I wouldn't be posting this if I hadn't already searched for the answer on PB, here's my question.

Got a call from a lead today and he wants to sell his rental property. 5/2 single duplex with 2,214 Sqft. ARV for the area is roughly $340K ($339,333 to be exact). at 90% ARV the value is $305,400 - $15,498 in repairs ($7/sqft) - $10K (my profit) brings it to $279,902. He agreed to sell for $275K and I would sell it to cash buyer at $285K. Average rent for the area is about $2K/month.

With a mortgage still owed on the property of about $230K can I still do a traditional Wholesale deal? Owner already doesn't want to do a Lease option, so that's out of the question. And would a Sub-2 work in this scenario? 

Thanks in advance!

@DavidMarkette and @DevanMcclish thank you! Hours of scouring through the net couldn't have given me better information. looks like I've got some work to do. I will post back with an update on how it goes. 

@Devan Mcclish Thanks for the response! 

House was bought in 2006 for $549,000. 

Owing $375,000. 

Again, she gave very little detail over the phone but was for sure motivated to sell. I wasn't expecting to find a seller-finance deal on my first call, so i've been doing most of my research for absentee owners.

Hi

first and foremost, I just want to say that I am new to the real estate investing business, but would appreciate any help anyone could give.

I recently began a yellow letter campaign last week, sending out 100 letters last Friday. Monday at 5:57 pm I I get a call.... I was not expecting it to happen that fast! but it felt great. The lady I spoke with told me a little about her property. How much she owed and when she bought the property. I had asked her why she was selling, but it turns out she still lives in the property and wants to continue living there but wants someone to buy the property because she is behind on the mortgage. 

At the fear of sounding like a stupid question to most, can I make this into a deal and into profit? From the vague description, does this have potential to be a deal? If so, what kind of deal could I make of this? Wholesale flip to a buy and hold investor?

sorry for the long windedness but I'm very excited to have such a quick response.

thanks in advance. 

Hey BP! Nick here with another question, this time regarding profit for the wholesaler. I have heard from many investors about using the formula ARV X .70 - rehab cost - desired profit = MAO. But just a few moments ago I heard of someone else using separate formulas together for the buyer purchase price and the wholesaler purchase. Those went as follows: Buyer formula: ARV X .70 - rehab cost = buyers purchase price Wholesaler formula: ARV X .65 - rehab cost = MAO Now where the profit comes from is the difference between the buyers purchase price and the MAO. My question is which one is better to use? The first formula using only the .70 or the second set of formulas using both .70 and .65? Or is it all just preference? Thanks, Nick

Thank you all. this information has been a big help. So basically going through an agent to find deals is a waste of both my time and the agents time, yes?

Hey BP! This is my first post and I'm glad to be part of such an expansive community of investors. Ok, so my question is, I found a house the other day that I am interested in wholesaling but the realtor who was going to show me the property said that I needed to be pre approved. Now I don't have money to invest in myself, as I was going to use the end buyers finances to find the deal. Should I let him know this or just get the pre approval. Just a little confuse on what to do next so a little push in the right direction would be helpful. Thanks, Nick