Posted by: Scott Rister
10/17/2002, 23:52:36
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Michael, I find, and you can too, deals that are really good but I mean let's get real: 65% LTV including repairs! Now, it's all relative to your market but I find deals that are at 65%-80% and even higher LTV and wholesale these because I've worked hard having a ready stream of buyers who will still pay me a premium to buy those properties. How in the world can I do that you ask for properties with LTV's that high? It's because they have existing financing already in place and nice financing to boot! Have you checked out interest rates recently and over the last 2-3 period I mean we're living in the promised land of real estate. You just absolutely must have all the right documentation and procedures to wholesale a property with existing financing. It isn't rocket science as much as it is just following the to-do list. In question #2 you asked, there are some buyers you can find that want want you're calling "sweat equity" to do the fix up work. It's just not my angles on properties. Of course everyone has their most comfortable angles in RE that work on, and mine is that GENERALLY speaking the type of potential owners I deal with want a turn-key house and are willing to pay the 5-10% down to L/O if from me. It's just a group out there that want the sweat equity approach. However, when and if you can find those type of buyers then no doubt if you structure your deal correctly that it's more than worth your time looking into. Thanks,
Scott
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