Reasons not to wholesale

You paid to much, to much repair, bad area, no buyers, you paid to much.

Michael Mangham
MD Home Acquisitions LLC

Dont equity plays apart in it as well? When a owner owes a mortgage, should you do a subject to?

That would come under paying to much. Trying to pound a round peg into a square hole. I don't like doing sub 2s or L/O on houses with no equity, some do, I don't. Not is this market today, Things can change. Most properties are still depreciating and won't see any real appreciation for 10 years. There comes a time when you have to sell or re-fi to pay off the seller right? The properties better offer some GREAT case flow to cover the maintenance and vacancies over that time period. Now if you can get some decent equity and cash flow I am all for it! Others are doing the no equity/upside down thing, we will have to wait 10 years or so and see if they are still around.

Michael Mangham
MD Home Acquisitions LLC

Isnt there ways to do a subject to without paying for anything? Would you wholesale a deal where the owner owes a mortgage the same way you wholesale a house that is paid in full?

Yes

Michael Mangham
MD Home Acquisitions LLC

So what are some cases would you rather use a subject to rather then wholesaling the deal right away?

Their shouldn't be many or any reasons to do a subject to when wholesaling. It has to be a great deal for your buyer to buy, so if you are trying to get creative just to get the deal done but there's no equity for your next buyer then you will likely not be getting rid of it.