Wholesaling Pre-Foreclosures
Hi all!
I have a direct mail campaign out to homeowners in pre-foreclosure, but I'm finding that even when homeowners do have some equity in the property, it still doesn't help the homeowner if I offer 65 or 70% of market value in cash.
One example - I just heard from a homeowner with a house in pre-foreclosure worth about $320,000 (based on my comps). The homeowners owe $266,000. If I offer 65% of market value (~$208,000), they would still need to bring almost $60,000 to closing, which they can't do.
So, my questions are:
1) Does anyone know of strategies that would work in this type of situation? (owner financing options, subject to, etc?)
2) Are any investors buying properties that are a certain dollar amount under market value (ex. $50,000 or more under market value) instead of a percentage (30% or more) under market value?
Would love to hear your thoughts - thanks!
Laura