The main challenge I see is to convince the seller that you are a good, well organized investor, who will take all the burden off of them, giving them regular guaranteed monthly payments, while they continue to receive all the tax benefits of ownership, during the term.

The trick is to get the bank to sell it for 80% of distressed value and resell it for 90% of retail value.You know the value is determined by the BPO agent.

I know this number could be 100 or 0, but what is everyone using as a sample rate when trying to determine if a deal makes sense?

Certainly would be worth doing if your ownership includes all the equipment that's inside a Jiffy Lube.My understanding is that amortization periods for NNN properties may be limited to the remaining lease term.

No inspector will be able to determine the condition of water lines that are in the walls and floor unless the water is turned on or they otherwise pressure test the lines.

The court may determine that your late fees are unjust and don't represent actual costs to you.

Then, indeed, you would just sell it again.Using a contract for deed is a way to avoid actually transfering ownership, and avoid the DOS.Jon

I once purchased a condo from a developer/converter who, because of 1031 Exchange rules, had to maintain ownership of at least 25% of the units in his 100 unit building for at least a year before selling.

As a new wholesaler, I'm still confused how I estimate rehab costs when determining the maximum allowable offer and the profit potential.

Like all confidence scams, this setup plays off of the ripe greed and/or desperation of property investors and homeowners alike who are holding houses they need to move.I have yet to determine how widespread this scam is.