Today I received a call about a possible Sub-2 deal.  The house has a 153K mortage about 4 yrs old.  The house is worth about 153K.  The house is a 1300 rental and the PITI is about 1000/mo.  The house is in perfect condition.  Are you thinking there is no way right?  Well there is always a way if one can gain the cooperation of others.  One local Sub-2 Expert I know will only buy Sub-2 If there is 82% Equity in the property.  Well there is about 28K in missing equity for this deal to work.  The sell can provide the missing equity by giving you the cash or by making payments.  This particular seller has been making payments for over a year already because they live out of state.  The owners refuse to rent it out because they do not want the house messed up.  The only way I would do the deal is if the owner would make payments for 2 years from the date I buy the property.  That would bring in $31200 in cashflow before I would even have to make payment and that doesn't even include the NROC that I would receive that would be between 3-5% of the price at which I sell the property to a Rent to Buy tennant.  We are currently in a Real estate slump so one would think that there would be some appreciation in the next few year to develop a spread and the mortage gets paid down more each month.  Are you thinking who sell there house with these terms?  Well, people have done stranger things.  You don't know until you ask.

Daniel Ratcliff
Dan@IndyCashFlowExpert.com

"The Ethical Wholesaler"

For the best Investment Wholesale Properties in the Greater Indianapolis area check out www.IndyCashFlowExpert.com