Wholesaling a property that closes in less than a week

3 Replies

I just now found a property that is scheduled for foreclosure on oct 1st which is next Thursday.. comps tell me ARV is 280k-306k she is behind on her mortgage a total of 71k meaning she has 215k-235k in equity, I'm not sure how to calculate my start offering price and my max offering price to the seller.. i want to make a solid 20k on my end and I'm assuming without seeing the property yet its going to need 20-25k in repairs.. if anyone could assist me in going about this i would really appreciate it!

@Thomas Valdez ,

If it's going to be foreclosed on in less than a week, that's not a lot of time to put this together if you're not willing to buy it outright. To do that, you might want to get in touch with a hard money lender. They are going to make sure your numbers are accurate because it's their money on the line.

Without knowing a lot about the property, I would think you might be able to lock this up for about $160K if you're looking for about a $10K fee.  If she's behind $71K on the mortgage, that means she ends up with around $90K, which is way better than nothing and a foreclosure.

Of course, I'm basing this on your numbers above.  You estimated the repairs at $25K without seeing it.  I'm willing to bet that if she's that far behind on her mortgage and it's going to foreclosure, that number is low.

A big problem here is the timeline.  Normally, you're going to put a property under contract and then go about assigning that contract.  You would normally give yourself a month or so to do all of that, but you have a week.  You could possibly put it under contract with the terms that the contract is void if you're not able to execute by the foreclosure date.

That said, I've also heard of people being able to put the foreclosure on hold.  You would need the help of someone experienced in doing that.  Since I'm not experienced in anything like this, I would quickly go to a couple of people in my area that I trust to see if they think this is possible.

Well, find out the total amount owed to the lender.  

If you're that far down the foreclosure road, you're way more than the $71K balance.  By the time you add lawyer minutes and penalties and fees, it could easily be an additional $50K.

If you can still make money, then get the cash together and call the bank.

If this is your first deal, I would be really really certain you can deliver.  If you are wrong on your numbers and tie this property up, this lady could lose her house .