OfflineThe town I want to invest in,has sent a link saying that foreclosures are on the rise.I want to wholesale,but it isnt possible to wholesale foreclosures is it?If not what strategy whould you use to pick up these foreclosures?
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mike
When you say foreclosures, what do you mean?
1. Bank owned, already foreclosed on
2. People that are behind and getting foreclosed on. Pre foreclosure?
Either way you can wholesale them.
If it is foreclosed on it has become an REO.
You will most often have to offer through the listing agent for the lender.
1. Find a property the numbers work on.
2. Make offer to lender through the listing agent. Supply your POF and copy of earnest money check with offer.
3. Offer accepted
4. Sell your deal to an investor using your own purchase agreement.
5. Set up the double close using your investor friendly title company for the b to c. Do not tell the bank or their agent anything other than you will close with cash.
6. Do the double close. Use transactional funds, sell the LLC or trust or simultaneous close.
If you are dealing directly with a home owner in pre foreclosure.
1. Find a property the numbers work on.
2. Get it under contract with the homeowner
3. Assign your contract to your buyer
4. Take both contracts to your investor friendly title company and close.
The hard part of wholesaling is finding the property the numbers work on! Not every REO or person in pre foreclosure is or has a deal. Most are not deals!
Find properties and start making offers or you will just flounder!
Michael Mangham
MD Home Acquisitions LCC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Thank you Michael for the great input!
mike