What Is Equity?
Also known as: Home Equity
Equity is the difference between a property estimated value and the debt owed against it. Higher equity gives more room for discounted offers.
Equity is the difference between a property estimated value and the debt owed against it. Higher equity gives more room for discounted offers.
Equity explained
Equity is one of the main filters behind wholesale lists. If a seller owes too much, even strong motivation may not leave enough room for repairs, buyer profit, and the wholesale fee. High equity does not guarantee a deal, but it increases the odds that a cash offer can solve the seller problem. Operators should still verify debt, liens, and payoff details before relying on an estimated equity number.
Example
A property worth about $250,000 has a $90,000 mortgage balance. That equity may create room for a wholesale offer if the seller is motivated.
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