Wholesaling To Non-investors
Hello. Does anyone have any experience selling to non-investors? The owner is working 2 jobs and justs wants to get the house off her hands. The house is in move-in condition, and there's not enough equity in the deal for another investor to make money.
Basically to pay my assignment fee, the existing mortgage, and back payments off would cost $65k...and the house should sell for $75-80k.
I was thinking about putting an ad in the paper that says something like: "well-qualified or cash buyers only....move-in cond....$15k under market (or $80k comps)."
Any thoughts? Thanks.
If they just want to get the house off their hands, would they consider a Subject 2 transaction? you could do with the house what you want. you could resel it on a wrap around mortgage, and get positive cash flow, and build in a couple of years of appreciation making this a sweet deal for you.
Nope. Sub-to is no good with this deal...because she owes about $8,000 in back payments, fees, closing costs, etc...and she also needs some moving money.
A new buyer would probably only put down between $4,000 and $7,000...and apprciation is only about 1-2% around here.
Not sure you can make this one work. It does not sound like the seller is truely motivated. Additionally if you had to use a realtor to unload it at the other end you lose money on the deal.
Might want to walk away.
[addsig]
Definately with the situation you discribed, If you can't raise the rent enough to generate a positive cash flow, this one is definately a passer by.
Thanks for your inputs.
She is definitely motivated. I plan to offer her about $60k...which I know she will accept. I then plan to assign the contract to someone who really wants to live there and will definitely qualify...for about $65-70k.
They shouldn't need a RE agent because NY is an attorney state and they can write up all the contracts instead.
bth126,
If you have the money to bring the payments current, lease option the house to a buyer and get your money on the back end. Or,put the hose under contract and assign, or L/O, get your option money and bring the loan current.