Mundo Sanchez breaks down a real estate wholesale deal that looks weak at first glance. He'd pay only $5,000 for it, but restructuring the terms changes everything: 10% down, 30% LTV, and $35,000 at closing flips it to cash-flowing.
"I probably wouldn't pay you more than five grand."
10% down.
30% LTV.
$35,000 cash at closing.
No more than $5,000.
If you brought this to me as a wholesaler, I probably wouldn't pay you more than five grand, to be honest, because this is not a very good deal. If you had to structure it this way, I honestly, it would depend on my mood if I would do this deal, because this is not a good deal. I just want to be straight up with you. Like, you're kind of forcing this into, like, a palatable deal that you can tolerate is definitely by no means a good deal. We just, we just found a mathematical way to turn this into a cash flowing property. We gave the seller 10% down. We took out an LTV of 30%. We made $35,000 cash at closing. We're cash flow, we're breaking even. We just made this into a winnable deal, right.
