How to Wholesale Houses to Owner Occupants

Posted on Apr 8 2019 - 4:47pm by Lance Edwards


 

 

By Lou Castillo —  As real estate investors we are taught to locate motivated sellers and buy their property well below market value. As wholesalers we are taught to sell these great deals to investors. But is there another market for deals? Especially another market for deals we cannot sell to investors?

Home owners often face changes in their life and need to move quickly. Unfortunately, if they didn’t originally have a big down payment, they may not have much equity in their property, especially if they only bought their house a few years prior. As they face these life changes, they discover that in order to sell their low equity house using traditional methods, their only option is to bring money to the table. For many, this is impossible. So these are very motivated sellers with limited options.

On the flip side, if you have ever applied for a bank mortgage, you know the trials and rigors they put you through. A large portion of potential buyers cannot qualify through this process – even though they earn enough money and even have a decent down payment. Self employed entrepreneurs are a good example. Banks often view entrepreneurs who do not receive W-2 wages as high risk (frankly I see them as a better risk). So these buyers do not qualify for traditional loans.

As a successful investor and wholesaler, you want to look at the changing environment and not get stuck with conventional wisdom and strategies, and rather adapt to the new market to capitalize on the opportunities. Yes, I said opportunities. Even though the changes seemed like they are profit crushing; they instead provide new opportunities not previously available – if you look for them!

On the one side we have not just motivated, but desperate sellers trapped in a market ready house they can’t sell because they don’t have sufficient equity to the Realtor’s commission and closing costs for the buyer. Their agent makes them face the realization that the only way to sell is to bring money to the table…an option that is not only distasteful, but often unrealistic. These sellers soon discover that they are stuck with the property for a while. Imagine how desperate this must feel for a couple getting a divorce, or for someone needing to relocate for a job.

On the flip side is the tremendous volume of potential buyers who do not meet the stringent criteria set forth by conventional lenders, but who have the means and determination to pay their mortgage should they be afforded the opportunity to buy. They have been dreaming of home ownership. They had worked hard, saved money, and suddenly discovered that the criteria had tightened so much they could not qualify for a loan.

Both of these groups represent the pent up demand for houses that is unfulfilled due to the lack of available financing in the marketplace. Therein lays the opportunity. Do you see it? A large group of home owners desperate to sell and an unfulfilled pent up demand for houses. All that is missing is the financing.  A wholesaler can earn a fortune just by creating a financing mechanism.

The beauty is that it is already available. In fact, the underlying problem is that the home owners cannot get out from under their existing financing.

These are the perfect deals because everyone wins. The homeowner gets out from under their current house and mortgage payments; the buyer is able to OWN a home without having to go through a bank to qualify for a loan; and the wholesaler makes money for putting the deal together. Even the lender wins because the payments continue to be made timely.

Putting together a deal using the existing financing is easy, but you do need to know what you’re doing and have the proper Disclosures. I have put together a simple program that gives you everything you need and how to properly structure one of these deals.

>>Click Here Now to Learn How to Wholesale to Owner/Occupants

Your time is valuable so I didn’t waste it putting in a bunch of fluff to seem like the training is bigger and better. I kept it simple and down to just a few modules that you’ll get through in less than a day. After that, you’ll be ready to start wholesaling houses like these yourself.

Added Benefit: If it hasn’t occurred to you already, you can use this same strategy to buy houses yourself. Using this technique for financing, you can fund a rehab purchase, a rental purchase, or even a house you’ll live in yourself.

>>Learn This Simple Technique Here Now