Pre-Foreclosure Strategy

[Linda Sandoval]

Hello All, We are fairly new to REI. We have numerous hours of reading, research, seminars, meet and greets, and the list goes on and on. We have begun to make calls and speak to cash buyers, realtors, and sellers. Not making any kind of offers just yet, just looking for what these specific individuals want when it comes to their role in real estate. We have visited properties to get the feel of how to estimate the repair value cost. Now we are ready to create our own strategy to make offers and build capital. As my husband and I speak about what our strategy is going to be I know I want it to be in the area of pre-foreclosure. I want to help individuals prevent foreclosures being on their credit (sometimes we just need a real second chance available). Please give me your thoughts, questions, comments, and constructive criticism for our beginning strategy below.

We market to those properties in a pre-foreclosure status.  We will offer to take the property off there hands by catching up on their late payments, offering them a percentage based off of the amount of equity minus repairs in the home, and allowing a 30 to 60 day period to move. Of course, all this would be under a real estate attorney oversight (any recommendation in Houston Tx area). Our first couple of deals is to solely build capital. We would wholesale the property to cash buyers.

We have thought extensively about that 30 to 60 day period to move. What if they don't move in that time frame? That would be for the cash buyer to deal with, how do cash buyers feel about this? Yes we would definitely include that in the contract sold to them. I think allow them this time to get their finance together to find a place to live will give them some sense of relief and will be willing to sell the property at a cost below market value.

Now, I have not talked to an attorney just yet, that is the next thing on my list. Like I stated above, please give me your thoughts, questions, comments, and constructive criticism.