Making offers on REOs
Noob wholesaler question...
Came across this property description in the FSBO on Zillow:
**JUDICIAL SALE OFFERED BY MECKLENBURG COUNTY CLERK OF COURT, SUBJECT TO 10 DAY UPSET BID & CONFIRMATION BY CLERK OF COURT
**CONTACT COMMISSIONER: (removed name / email) CONTACT TO SET UP SHOWING/MAKE OFFER
**PROPERTY SOLD ?AS IS?
**CONTRACT ON PROPERTY MUST BE ACCOMPANIED BY 5% EARNEST MONEY DEPOSIT
** OFFERS MUST BE FULL APPRAISED PRICE ($192,500) AND MUST INCLUDE PROOF OF FUNDS OR PRE-APPROVAL LETTER
There's a lot going on here.
Is something like this off limits for a wholesaler since he / she most likely doesn't have the 5% EMD to get it under contract? Or I guess it doesn't matter as long as you have a clause to opt out of the contract if you don't find an investor in time that would really be the one paying the deposit?
And how does the 10 day upset bid thing work? If someone gets it under contract for $192,500 but then during that 10 day period, if another offer came in at $193k the new offer would take effect and the first person would have to either walk away or make a new, higher offer? Is this like bidding on ebay where someone waits until the first person gets something under contract and they wait until day 9 and make a slightly higher offer? Does this then reset to a new 10 day upset bid period?
Thanks for any insights, BP :)