I Need to Hash Out a Possible Deal

I Need to Hash Out a Possible Deal

I have a FSBO seller of a duplex that wants out of her property. However, here is the situation.

1) The Zillow estimates are approximately $84,000 for the neighborhood.

2) She owes $80,000 on the property.

3) Said she would consider taking $75,000 and making up the difference.

The neighborhood rents for $850 - $950 per month. Her selling point is the rental value and the property appraised for $99,000 back in 1999. It is in decent shape and has been well maintained. I do have some landlord buyers on my list.

As a wholesaler, is there is deal here or is the risk too great to put this property under contract?




Negative people are like cancer. They'll eat you alive unless you irradiate them out of your life.


It seems like it is too close to me. I have some similiar situations, but don't feel there is enough room to make a profit. You have to account for many things, and so I am doubting this is a good choice.


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No elbow room

Unless you want to keep to rent out, but move on.

There are many out there.


$850/mo on a duplex is a 25% cash on cash return. Why would you not want this deal?

Deal or No Deal??


Are you negotiating with her to buy the entire duplex (i.e. both sides) or just her half? How many Beds / Baths on each side? What if any repairs are needed on the either side?

Now some more details. Are you a member of the DG Success Academy? I ask because this does look a little thin on the surface for a straight-forward purchase / (re)sale - wholesale to your Landlord buyers....but there may be other options. For example, how about a Sandwich Lease Option (hold the mustard please {jk}). Seriously, this may be an option that might work for your Landlord buyer.

They (your buyer) would gain control of the property in order to place their tenant in the property which should CF nicely. The current financing (mortgage) would remain in place with your Landlord buyer making the payments (possibly through an Escrow account or a mortgage payment processing company so that the current owner knows with confidence that the current mortgage is being paid and on time; the fee for this is very small, say $35 a month or so). Your contract could have a balloon requirement that your Landlord buyer cash-out the current owner in say 5 years (with a refi??) so that the current owner knows that the loan will be paid-in-full in the mid-term future. All maintenance would be the responsibility of your Landlord buyer.

Another good thing is that the current owner is willing to bring some cash to the table to sell the duplex (again, both sides or only half??). This is a sure sign of a motivated seller!! Don't necessarily walk away from this one, just get creative and think outside of the box.

Here is to your continued success!


You might have existing buyers

You are/were a financial advisor, i'm quite sure you know some clients who would be interested in investing their money in real estate.

You've got a ton of resources at your disposal in terms of your financial connections so you should present them with them options which in turn can help you.

Hope this helps.

I agree with the others, What's your exit strategy

Like some of the others said if you are willing to keep the property as a rental property or assign to someone else as rental deal then it's worth locking up as long as you have some type of exit clause in cause you can't find a buyer. And the assignment is really going to depend if it really is not in need of any repair or renovation. You could even express your intention to the current owner of helping her find a buyer via assignment not only being fully transparent, gaining yourself more time, and even possibly getting the first right of refusal incase someone else places an offer.

But I wouldn't force it. There is and always will be greater deals.


if you're planning on keeping the property for your self and it cashflows, that's great. i don't personally see a whole lot of profit there for a typical wholesale, but like elix said you surely know some people who'd want this. don't worry about the money. it'll come. worry about a quick deal that everyone can live with.
keep moving forward, rob


whether you think you can or you think you can't, you're right.- Henry Ford
keep moving forward, rob

Treat RE like you do finance

Build relationships and let them grow.

Like I said you've established enough credibility to actually say you have multiple cash buyers; Mention that to agents when you speak with them

"I have been a financial advisor for the last ## years and have decided to partner up with an associate to get into real estate to further build my portfolio and I am looking for an agent who would want to work with me.

To answer your questions, I have several clients who have liquid assets they would be willing to invest and I can bring them to you if you want to pursue an agreement."

I, the ultimate pessimist, would be at a loss for words and work with you.

If you told me "if you want, I can send you my corporate docs(hint, hint) before we have our next conversation" I would treat you to lunch to meet and pick your brain.

You've got alot to offer; make the most use of it.

Good luck, hope it helps.

Good stuff

Good stuff Elix. Sometimes I forget about the financial acumen I bring to the table. Phrasing it like that definitely puts me in control of the situation.

Gumby: I like the idea -- unfortunately she holds a 15 year note at $900 per month escrowed. There just isn't any cash flow for the investor if they assume her note with a rental range of $850 - $950 per month.

I got the feeling that unless I can bring a landlord cash buyer to the table willing to work within a couple thousand of the Zillow appraisal, I just don't have a deal.

So in conclusion, I think I agree with those that 86'd the idea. I kinda knew that already, but figured I'd run it up the flagpole and see what happened.




Negative people are like cancer. They'll eat you alive unless you irradiate them out of your life.

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