Can you wholesale a house with negative equity?

[Phedeline St Felix]

Hello everyone, I am new to wholesaling and I’m trying to get my foot in the door into real estate investing. I decided to start around my county in Broward which is in South Florida and I recently came across a property while driving that’s in pre foreclosure and while on PropStream it says it has negative equity. I was wondering how if possible can you wholesale a house with No or negative equity? Any Tips?

[Minna Reid]

The only profitable way to buy a house with no equity is as a short sale. Unfortunately there is really no place in a short sale for a wholesaler as the lender approval process simply won't leave room for one (too regulated, and rarely any profit margin available for a third party anyway).