I'd contact a title insurance company and ask a title officer what they require.There may be an informal, simplified method or a short process for small estates that your opportunity fits.

To simplify. 90K has no granite or hardwood. 100k has either granite or hardwood. 110k has both granite and hardwood.There are a lot of other factors I'm skipping over like what the curb appeal is.

(You can do subject to, but that is another story).If I have 0 equity, owe the bank 100k for a 100k house, it is bad for the wholesaler because there is not way he can get a discount, because me as the seller will want "retail" so I dont damage my credit with a short sale.If I have negative equity, I am motivated to get rid of the property, and it doest matter how much it sells for, as long the bank approves.I am simplifying things, but that is why equity matters.If this is your first time I highly encourage you to do driving for dollars first.

Think of it as a limited partnership agreement simplified.

The difference is what you divide income by, Investment (owners equity) or Assets.In an over-simplified example, you buy a property for $100k, put $20k down, and take a mortgage for $80k.

Great article that simplifies it quickly and it is very pertinent for today.

If he says yes, use this formula, although it is grossly simplified because I don't know what area you are in: 1.

It really simplifies the process & helps thing move along at a rational pace.

Joe A, basically your thoughts above are correct but simplified.

Here's my simplified as possible scenario:in 2011, I set up LLC, bought and sold flip title in LLC, LLC made 25k profit on sale of flip.