NO EQUITY PLEASE HELP

Please read and respond

Tim,

The business of wholesale real estate investing is to put properties under contract at a price discounted from 30% - 50% of its After Repair Value (ARV). The deal you describe above is at retail, so you aren't going to make any money.

My suggestion is to first build your buyer's list, find out what types of properties they want, and then go find them. Make sure you find out exactly what their buying criteria is so that you don't waste their time, and yours, presenting them with properties they won't be interested in.

Also, you will need to be prepared to make lots of offers as all of the sellers to whom you make offers won't want to sell at the discounted prices you offer.

Good luck.

The question I would have is what would the property rent for?

Could you lease the property and find someone else to re-lease it from you? Even though you are dealing with little equity you could profit on cash flow.

The caution here is that you have no equity which creates a riskier position for you.

In a lease option you may be able to find someone that can put a large option credit down it would lesson your risk that you may carry.

Keep in mind as well that normally lease option rents generally pay about 10% more than common rents.

keb64 has it correct just as nstreet. This would allow a lease option on the property. Get more upfront in the option credit and get money throughout. If you set it up right you can make money on the transaction even though there is no equity.

The comment nstreet gave would be correct as well there is more risk in not having the equity in the home so as much as you can you will want to get some equity from the home if you can. This may include a short sale or getting the seller to pay for a portion of the equity for you.

Your "here and now" options are limited at best. Find out what lien/s is/are on this property. Ask lienholder/s if they would take a reduced amount in exchange for a quick payoff. If not, ask if they would soften their terms or eliminate their interest rate for a quick payoff.

All your other options involve buying and holding long enough to create an equity "buffer" you can profit from when you finally sell to someone else. Coaches pretty much covered those already above. Remember what Dean says: 1) "Have the house sold before you buy it." 2) "Have multiple exit strategies ready to go." and 3) "Full price CAN be your friend!" as long as you can profit later down the road. Best of luck to you...