Hey Gina, many of the questions you asked should be discussed with an attorney. I am going to try to answer them to the best of my ability, but I must disclose I am not a lawyer and for any legal advice you must seek professional legal counsel.
"Is the process any different than in wholesaling a house that isn’t in default?"
Generally speaking no, but most of the wholesale deals derive from distressed homeowners due to their wiliness and motivation to sell.
"Is it easier to Wholesale a pre-foreclosure than a foreclosure?"
This can definitely vary from deal to deal. Also, determining whether something is easy is difficult because it's a matter of opinion. If you are referring to wholesaling bank owned properties you would have to negotiate with the lender and most lenders do not allow you to assign the purchase and sale contract. Most also require an earnest money deposit. When it's a pre-foreclosed property it could be difficult because you are dealing with distressed homeowners and people and sales skills come in handy there. Majority of the time I hear it is easier to wholesale a pre-foreclosure with a ready, willing, and able seller.
“Any advice you can give on how to be successful in wholesaling in general (not specific to Foreclosures)?”
Marketing, being able to speaking with people, negotiation skills, and did I mention marketing? The best in the wholesaling business are the best at marketing! Building up a team of real estate professionals is crucial also, which consists of Realtors, hard money lenders, contractors, building inspectors, appraisers, title companies/attorneys, insurance agents and that’s just to name a few!
“How do you build your network of cash buyers?”
You can market online using websites like Craigslist. You can also network with investors in person at local real estate meetup groups that can be found on Meetup.com > Career & Business > NJREIA
“Do you ever go out to physically meet homeowners whose homes you’re looking to buy, or do you do everything remotely?’
You have to meet the homeowners in person because a very important step in the wholesaling process is viewing the property (from the inside and out) so you can properly estimate repair costs. You would then factor in the repair costs into the offer you would give to the homeowner.
“What kind of contracts do you use for your wholesaling and assignments?”
You can find some contracts that you can use right here on the BiggerPockets File Place. You would then have to search “wholesaling contracts” in the search engine. Be sure to read them over and go as far as to sit with an attorney to review them.
“How long did it take you to do your first wholesale transaction (from when you sourced the home to when you successfully assigned it)?”
Honestly it was about 3 months and most of that time was used in actually finding the property that I wanted to act on.
“I know that buying a foreclosure can take a long time. How much longer does it take to wholesale a preforeclosure/foreclosure? Or is wholesaling not affected by the longer timeframe?”
Generally speaking a preforeclosure would be shorter than a foreclosure as there are more to the deal than a quick cash offer and the property owner accepting it.
“What safety measures do you implement to: ensure you have a serious buyer, ensure you won’t be forced to buy the home in the event that a buyer backs out or you can’t find one, and to ensure you ensure everything is being done legally?”
Most wholesalers create their contracts with many contingencies so they can get themselves out of buying the property if needed. Again this is something I would discuss with my lawyer.
“Do you need a lawyer to facilitate wholesale transactions in Northern NJ, or can you use a title company up here as well? I’ve heard mixed answers.”
Northern NJ uses both ways of closing, so you can use a title company or an attorney. Either or is fine but I know of many investors just sticking to using a title company.
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Hope this helped you out!
