Do people wholesale foreclosures?

Question

Is this a thing?How does this work typically?

Jim Keller · Answer

I use bird dogs to find some of my short sales.  They never put the deal under contract with anyone but me and its been working.  I just manage the bird dogs and mentor them as they help get me in there home.  I have been offering 3 to 5 thousand dollars for the referral or if the bird dog has cash I offer them an equity position for there second mortgage investment.

Lucas Machado · Answer

Why would it be different from wholesaling anything else?

Keishee Hill · Answer

It would be hard to get a bank to go into contract with a buyer who is leaving the option to reassign the contract. Banks also require a large amount in earnest money.

However, if you did decide to wholesale foreclosures, the best way would be to use a bridge lender and then sell the house after you acquire the property. Therefore, you would carry more liability then if you were just wholesaling houses from a distressed owner.

Do people wholesale foreclosures?

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