Real Estate Agent · Miami, FL · Member since 2019 · 7 posts · 2 votes
I did my first “cold call” to a young lady who’s property I found vacant while driving for dollars. After conducting research I found that her property is in preforclosure. During the call she stated that she had filled for bankruptcy and she’s going to let the property go into foreclosure. Is it possible for me to wholesale this property before it goes into foreclosure and what negotiation strategies are recommended? (I was very nervous and did not know what to say)
Not now, no. if she's still in active bankruptcy, the court controls any potential sale. There would have to be a hearing and the BK court would have to agree to the sale. I can't see any court allowing you to purchase it without exposing it to the open market, with an agent, to maximize potential proceeds to the creditors of the BK.
You should be nervous. That's a good thing. You are engaging in a transaction that could involve large amounts of dollars with potentially many legal ramifications that you may unwittingly be a party to. If the property is in Florida, i'd read
501.1377 Florida statute before making any more phone calls.
You need to determine how much she owes on the property. If what she owes is under market value enough, you have room for a cash investor to purchase from you thru a wholesale.
You will need to determine what are other investors purchasing properties for in the area (aka... at what price will this property be worth it for someone to pay cash, fix & flip).
If she has a large, outstanding balance on the property.. chances are that there will not be someone willing to buy at this price and bail her out.