Watch me buy a $300K House for just $10K | Wholesale Real Estate

Hello?

Hello, Dwayne?

Who's this?

This is Tyson. I was calling because it looks like somebody filled out some information on my website about selling this property in Del Mar.

I'm interested in that, yes.

Yeah, so I was taking a look here. I just want to ask you a couple follow-up questions about the property to see if we could go ahead and get you an offer for it. Do you have about 5 or 10 minutes we could talk about the house right now?

Sure do.

Right on, Dwayne. So I'm getting the property pulled up right now. While I am, could you kind of catch me up to speed here? What's got you thinking about selling the place?

Ask that question again.

I was asking, what's got you thinking about selling this place?

I want to relocate.

Okay. So I got it pulled up. It looks like this house was just purchased about a year ago. Is that right?

Correct.

All right, and you're already looking to move?

It's gotten out of hand monetarily, and I'm trying to relocate, get closer to my job.

Okay, so when you say it's gotten out of hand, um, monetarily, what do you mean by that?

I mean that I lost the job that I had when I got it, and I can't afford it, so I need to move closer to where I'm working and have less payment.

That makes sense. So how soon are you looking to do that?

ASAP.

All right, so if we could get something done where, you know, we had you paid and out of this house, uh, like maybe first week of January, is that something you'd want to talk about?

Absolutely. I'm wanting to leave with at least $15,000 in my pocket.

$15,000. All right, well, how much do you owe on the property?

It's $267,000.

All right, so there's, there's a $267,000 balance on it, right? Well, let me ask you a question. Um, on that mortgage, do you know what your rate is?

5.7.

Okay, not too bad. What is your, what is your PITI payment, your principal, interest, taxes, and insurance that you pay every month? $1,962.75. I'm sorry, can you say that again?

$1,000 what? $962.07.

Do you have any idea of what property rent for over here? What that property would rent out for?

Rent?

Yeah.

I, I don't— I can't people on it, truthfully.

All right, no, no worries. I appreciate your honesty.

I mean, it's 4-bedroom, 3-full bath, 2,200 square foot, a quarter-acre land on a corner, on a corner lot. It's got a 28 by 24 detached garage, and it's been renovated right before I bought it. So I'm saying you probably get somewhere in the $750 for it.

Oh, I think you're going to be able to get more than that, but so do I.

But I'm not— like I said, I'm not the guy to really ask that question. No worries.

Well, I appreciate, I appreciate your honesty on that. Um, all right, okay, so $267,000, we're looking to walk away with $15K. All right, um, and so is it more or less in the same condition as it is from when you bought it?

Well, I have 3 little boys, so the walls need to be repainted and there's some holes in it when they put push the door back through the wall, but other than that, no, I think it's in this— Okay.

Well, let me ask you, I mean, if we were able to buy it from you completely as is, so you didn't have to make any repairs to it, clean it out, anything like that, you sort of just take what it is you want and then you leave the property, we pay all the closing costs, there's no commissions or anything like that, what is the lowest you would take for it?

I mean, I still have to leave with like 10 grand to get myself started again.

Yeah, that makes sense, right?

Because I don't have anything set up to purchase another property right away. I need to get myself re-established.

Yeah, that makes sense. That makes sense. Well, here's, um, I mean, I got some good news and some bad news when I'm looking at this property. Um, the bad news is, is I don't think that on just like a cash offer, we're gonna be able to get you what you want. Are you open to getting a little bit creative with me? If that means that we can get you to walk away with the 10 grand you need.

Depends on what you mean.

Well, there's a way that I think it maybe might be possible for us to get you the 10K you need at closing, and here's what this would look like. Instead of us going to get a new mortgage to buy this property, anything like that, we would simply buy your property with your current mortgage to stay intact. Now what that means is we would become responsible, we would become legally responsible for making your payment every single month for the deal. The, the, your note is going to stay in your name, so if you have plans to go buy another house or something like that, this is still going to be on your debt-to-income and everything like that. But you would get out of the property. You wouldn't have to make the payment anymore. And we might be able to get you $10,000 after us buying the property, paying the closing costs and everything like that. You can walk away from it. You don't have to worry about it anymore. But the note does still stay in your name.

It sounds like to me what you're asking me You're Investor Corporation, correct?

Yes.

All right, sounds like what you're asking me is you need it to be profitable to you before you can pay me $10,000. Well, you probably want me to stay there until you can find a buyer, and then—

no, here's what I'm— here's what I'm saying is what this would be is basically The way— yes, we need it to be profitable in some way or another, right? Now, as an investment company, typically the way we're making money is we buy a property that needs some work into it, right? We put some work into it, we sell it for more money, right? Or we buy a property, we put some work into it, and then we rent it out to a tenant, right? But here's the deal, it's really hard for investors like myself to buy property and rent them out to a tenant and still make money because interest rates are so high right now. Right now, if I want to get a mortgage on this property, I'm going to be— I'm going to be paying over 7% interest. However, if I can just take over your mortgage, then I can still make money, right? Because I think I'm looking right now and I think I could probably rent this thing out after I clean it up. Right, repaint the walls, redo the drywall, get it good to go. I could probably rent this out for somewhere around $2,400 a month. So to be honest with you, I'm not making any money, um, just because, you know, after I'm paying rent or after paying your mortgage, I'm putting everything aside for vacancy, maintenance, management, things like that. But I get some good tax incentives just for buying the property. But that way, here's what you know. Number 1, you have an established real estate company who's paying your mortgage off every single month, meaning this still affects your credit. You're still— you're being seen as, okay, Dwayne here is very creditworthy, he's making payments on time on this mortgage, right? So it's helping you out.

So what do I say when I go to get a new place, like maybe not even just buying it but renting it, and they ask me So there's some things, I mean, I'm not gonna answer on that right away, 'cause that's a little bit outside my realm of expertise.

I would have to figure out exactly on that. In the past, there have been situations where we are able to get letters that show that, hey, you're no longer responsible for this, you aren't paying on it, and we're able to help people get in some other places.

[Speaker] Well, that would be exactly what I would need.

[Speaker] Okay, so do you think if we could put something together like that for you, and that is something we were able to do, that you'd be interested in discussing this option a little bit further?

Yeah, I'm just trying to get out of this house with money, with a new place, start over again with my family, closer to where I need to be, closer to family. However you can get me extra $10,000 to $15,000 and not cause me any more hardship with credit and stuff, then I'm game.

All right, well, I think that's something we're going to be able to— we're going to be able to do, Dwayne. I mean, we specialize in being able to help out people just like yourself, right, that's in a situation like this. Where we don't necessarily have a ton of equity, but we can get you on, right, past this and onto that next chapter of your life, right? Now I'm gonna need to go, I'm gonna need to ask you a couple questions, I'm gonna need to talk to one of my bosses, and I'm gonna see exactly what it looks like to get you one of these letters so you are gonna be able to get into a new house, be able to get a rental or something like that. So what I think we should do is, I want you to think about this, you know, we planted a seed, I want you to take the night to think about what we've talked about, and then I'll give you a, I'll talk to my boss, I'll kinda see what this would look like, I'm gonna give you a call tomorrow and I'll let you know what I've learned about getting you one of these letters and how that work. And we'll go from there. How does that sound?

[FOREIGN LANGUAGE] in a couple weeks, then I'm all for it. All right.