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.

Comments(6)

  • jeff1200223rd January, 2004

    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.

  • bth12623rd January, 2004

    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.

  • telemon24th January, 2004

    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]

  • InActive_Account24th January, 2004

    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.

  • bth12624th January, 2004

    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.

  • pejames24th January, 2004

    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.

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