Wholesaling Foreclosures

[Sarah Dinsmore]

Hi, I'm new to BP and I have a strategy question. I know several people who have steady income but might not qualify for conventional loans because of their debt to income ratio (due to high student loan debt and/or cc debt). These people would be ideal for lease options.

So, what if I marketed to these people and got them qualified through a mortgage broker, found the foreclosure property in an area they'd like to live and offered this deal to an investor. Portland, Oregon has a lot of preforeclosures so there's good deals out there.

Beyond the assignment of contract fee, I'd have found a tenant for the investor and could include an additional fee for that part. I'm not in a position to buy and hold as yet so wholesaling is my initial strategy.

Comments, anyone? What problems or obstacles do you see?

Thanks.

Sarah