“Sellers are looking to get out from under their mortgage, and when you can put some cash in their pocket as well, you will be able to make the deal happen.”
monthly rent to the new owner until they vacate the property. By allowing options to sellers to receive the money they need before vacating, you are solving multiple problems for them, which allows you to have more opportunities for deals. It is all about expanding your reach on the types of deals you can do and put as many properties in front of your buyers that you can. WHOLESALINGWITH CASH FOR KEYSAGREEMENTS IN PLACE Issues with tenants is a huge prob- lem right now for many landlords and wholesalers. Landlords are look - ing to sell their properties but with non-paying tenants still under lease, it makes it a little trickier to whole- sale. We recommend that trying to work out a cash for keys agreement with the seller and assigning that agreement along with the contract onto the buyer allows you to still make the deal work. Our cash for keys agreements have ranged any- where from $500-$5,000 dollars for the tenants. When we send these
deals to our buyers, we just market them as “Purchase Price of $100,000 with a $2,000 fee to tenants upon vacancy in 30 days.” Not every buyer is going to jump on a property with a cash for keys agreement, but during a time when inventory is low and everyone needs properties, it allows you to have another option for some- one looking to buy. Another option for you when you are trying to wholesale with non-pay- ing tenants on a lease, is to do a lease negotiation. The tenants may be willing to sign a month-to-month lease in exchange for any back-rent to be erased. A month-to-month lease is more attractive to a buyer when dealing with a tenant because it then becomes an issue of non-re- newal instead of non-payment. WHOLESALING SUBJECTTO’S No one is exactly sure of what is going to happen when the foreclosure moratorium ends. But we do know that there are a lot of people with properties that are behind on their mortgage right now. This is a market that wholesalers need to be market-
ing to, wholesaling properties subject to a seller’s mortgage. Your purchase agreement is probably going to have to include the mortgage, a reinstate- ment fee, and some money to the seller, but there is going to still be plenty of meat on the bone with most of these deals. And there is plenty of opportunity. Sellers are looking to get out from under their mortgage, and when you can put some cash in their pocket as well, you will be able to make the deal happen. You can also look at doing deals with various types of owner financing for deals that have no or high equity, as well as wrapping a mortgage. If you are able to put a deal in front of your buyer that the financing is already in place instead of them burning their cash, you can set your- self up with a larger buyer pool. •
Brian Snider graduated from Ohio Northern University with a Bachelor’s in Middle Childhood Education and spent 14 years teaching reading and math. After
working on his Master’s degree to become a Principal, he decided that was not the path he wanted to take, so he took a job with Brett Snodgrass and Simple Wholesaling where he was Marketing Director, Dispositions Manager, then COO. He took over as the company’s CEO in June 2020.
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