Wholesaling Pre-Foreclosures

4 Replies

Hello all!!

I'm doing a bit of research to finding other means of wholesaling.  I've found that I don't fully understand the benefit and process of wholesaling homes in pre-foreclosure.  I've not found that homes going through pre-forclosure have enough equity to make the transaction worth it. 

Would you guys give some examples (with numbers) of times you've wholesaled a successful pre-foreclosure?  Did you find that it was worth it?  Would you do it again?  Will you share the steps you took to complete this process?  

Thanks to everyone who contributes!  

@Aquila Phillips , from what I understand, the way to Wholesale a Pre-Foreclosure is to negotiate a short sale with the bank, then Wholesale the deal. By obtaining the short sale you create the equity needed to do the deal and make it profitable for the end investor. I have never done this personally, so take my advice for what it is worth. Keep in mind, most banks don't allow you to assign contracts or do double closes because they don't want anyone profiting from their misfortune. 

 I have read that it cost banks an average of about $20k-$25k to foreclose on a property once all is said and done given a myriad of variables and assumptions. With that in mind, people do find success in negotiating short sales with lenders in the process of foreclosure. However, these individuals often purchase the property themselves and do not wholesale the deal. 

Look to solve problems, not just make money. Solving problems for banks and individuals will make the money for you. 

Best of luck and hope my meanderings help some what. 

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Originally posted by @William Higdon :

@Aquila Phillips, from what I understand, the way to Wholesale a Pre-Foreclosure is to negotiate a short sale with the bank, then Wholesale the deal. By obtaining the short sale you create the equity needed to do the deal and make it profitable for the end investor. I have never done this personally, so take my advice for what it is worth. Keep in mind, most banks don't allow you to assign contracts or do double closes because they don't want anyone profiting from their misfortune. 

 I have read that it cost banks an average of about $20k-$25k to foreclose on a property once all is said and done given a myriad of variables and assumptions. With that in mind, people do find success in negotiating short sales with lenders in the process of foreclosure. However, these individuals often purchase the property themselves and do not wholesale the deal. 

Look to solve problems, not just make money. Solving problems for banks and individuals will make the money for you. 

Best of luck and hope my meanderings help some what. 

 "Look to solve problems, not just make money ". Awesome! Thanks for the feedback and great insight!