Updated almost 11 years ago on . Most recent reply
Wholesale Pre- Foreclosures. Is it really possible?
I'm a newbie and still doing research. I'm interested in wholeselling pre-foreclosure however from what I've been reading it's pretty difficult to accomplish. I have a good process for finding pre-Foreclosures but I'm having difficulties understanding how deals are done from beginning to end. Below I've taken my stab at how I think the deal is done. Please poke holes where you see fit.
- located property where seller is 60 days in pre-foreclosure. Owes $90k on a home worth $110k.
- I've done research and found homes are selling for $105k to $115k in neighborhood. I offer to buy home for $90k from owner and have them sign Assignment Contract?
- locate a cash buyer willing to pay $100k and have them sign purchase and sales agreement.
- send both contracts to title company or closing attorney. Buyer and seller must sign off on paperwork.
- through title company or attorney I then receive $10k
As I mentioned I'm a newbie so I'm just trying to understand the process.
Thanks
Most Popular Reply
I make offers on foreclosures with equity every week. I don't mess with pre-foreclosures because from my experience, people in this part of the process more often than not believe they can pull themselves out. That rarely happens. But, it's not worth the argument from my standpoint. I wait till they are about 60 days out from having their house sold at auction. If they have sufficient equity, I drop a yellow letter on their a$$ with their auction date and how I can save them from this fate.