How to Wholesale a Pre-Foreclosure
My husband and I are wanting to get started in REI with very small funds. We figured the best way to do this is wholesaling (I know I've heard all the advice that it's harder than it looks). Luckily my husband is extremely smart and a very good people person. We think the best strategy for us in the Triangle of NC is to find pre-foreclosures and try to purchase directly from the person before it goes to auction. This gives us more time to find a rehabber to pay cash for the property (right??). We have our eyes set on one particular property that taxes have been neglected for approx. 3 years and built up a tax bill of a little over $10,000. Normally we would run from this, however, the home is actually worth $250,000 as is-the owners built the home in a very established neighborhood in North Raleigh in 1983.
I guess my question is...do we secure the home first under a contract with owners and then find rehabber or do we find cash buyer first? Also, would the delinquent tax bill scare off most cash buyers? From what I can tell on county website their vehicle taxes have also been neglected and when we did a "drive-by" look like they don't move from the drive-way...point being I don't think they will come up to date on their taxes at last minute and at the auctions here that we have gone to most of the time no one is there (investors) and the banks buy them all.