Wholesaling Propeties With No Equity? 9 posts by 7 users

Posted: 10/06/2008 at 04:58PM

It is a waste of time if there is no equity, but that’s the situation that people are in. If they had equity they would be able to sell the house. Wholesaling is looking for the needle in a haystack, it isn’t as easy as the gurus make it sound.

Posted: 10/06/2008 at 05:05PM

Yeah Richard, that is what I am learning, it is not as easy as it is made to seem.

Jon, my understanding is that to work a short sale the property owner needs to be in default and in "preforeclosure". The few leads that I have come across have been current in their payments so that is not an option....yet. I suggested that they contact me again if they found themselves being foreclosed on.

Thanks,

Chris

Posted: 10/06/2008 at 10:11PM

My opinion is not to throw away a lead that could be a good deal, especially when you're starting out.

Short sale is the way to go in these cases, but you want to ensure that you're signing up properties that have a good chance of getting a deep discount from the lender.

Such properties are those that have volatile features that can be pointed out and negotiated/overestimated by the lender. Example is huge repairs, bad neighborhood, huge decline in market value.

See if you can meet some buyers that might be interested, and negotiate the short for them if you have the expertise. Otherwise refer them to somebody who can make money and just collect your bird dog fee.

I'm a wholeseller in NJ and have a system set up to deal with the 90% of leads I get which have no equity. PM me and I'll tell you more.

Paul

Posted: 10/12/2008 at 09:13PM

Thanks Jon