More details:Mortgage (principal + interest): $2930/moProperty taxes: $15K/yearHome insurance: ~$1K/yrCost of home ownership/month: $4280/yr (not counting for any tax deductions related to the interest and property tax)If I account for $20K of interest and $10K of property taxes as an income deduction, then I can reduce the cost by ($30K x 35%) divided by 12 = $875 per month = $3400/mo cost of owning the houseRental income after 35% federal income tax + 9.3% state income tax = $2618/month (!!)

The reason most brokerages arnt into this is because if 25% of your transactions are you as a principal or representing family members, then most e&o policies will not cover you. 

If you have an opportunity that peaks their interest and fits within their mandate you may get an audience with the principal but you will have to go through some serious vetting and due diligence first. 

Average well over 20% in IRR due to principal pay down.I don't carry the debt or the risk.

$ for PITI (Principal, Interest, Taxes, Insurance); • 10% for Management; (even if self-managing, pay yourself for your time)• 5-8% for Vacancies; (Turnover happens & when it does it requires cleanup, repairs, listing, showing & leasing which can take up to a month easily.)• 5% for Repairs & Maint; (Repairs happen even on new builds)• 5% for CapEx; (Larger Expenditures will happen over time, so you have to figure for them.)• ?

This allows us to not only save thousands a year in monthly payments and increased principal paydown, but will also allow us to rent the home for more than the mortgage payment when we move out in the future!  

Adam Hey Adam, In Wholesaling, you are acting as a principal (buyer) in the transaction so you would just need a regular purchase & sale agreement with "and/or assigns" language and a marketing clause for you to be able to promote the property while you are under contract.

Hi Sebastian, it may not be advisable to form your LLC in California if the principal place of business is not located within California. 

In wholesaling, you are acting as a principal (buyer), so you will need to sign a purchase and sale agreement with the seller.

You may be able to draw on some of the equity that you have built up, without having to sell the property or refinance and pay higher rate / more principal.