Wholesaling W/o Getting The Deed....
Is there anyone doing this on a regular basis as an alternative for taking over the loan:
1. Contact seller in foreclosure and find out they owe 64k on a 100k mortgage.
2. Put a contract on house for balance of 64k.
3. Run ad in paper. List home at maybe 70k or so.
4. Get contract from investor along w/ dep.
5. Do a simultaneous close and collect profit of 6k.
Does this sound feasible. Also what am I to do if seller owes back taxes or homeowner assoc. dues?
Please shed light................
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I guess no one here is familiar w/ this huh....anyone?? :-?
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If only the world were perfect!
In a perfect world, we would all be doing every deal like this.
The Homeowner fees and back taxes etc will be paid from the proceeds of the sale. Since you have the property under contract for what is owed. This would likely come out of your projected profits.
What you have described is wholesaling!
Thanks for the reply Jeff.
What do you think the advantages and disadvantages of wholesaling this way?
I have access to the NOD's in my area and was wanting to take advantage of these leads by wholesaling and eventually sub to's. Please give advice.
DT
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The only problem with this concept is TIME. Sometimes the homeowner just doesn't have 2 months for you to find a buyer and close.
However if the property is worth 100k or more, I would advertise it at 70% of fmv/cash offers only and you should have plenty of investors willing to purchase--epecially if you are in a bigger city.
myfrogger
I agree TIME would be an issue if I didn't have my investors lined up before hand. But if I took this into consideration going into the deal, then everything should play in my favor...wouldn't you agree??
I am in the Charlotte area as you can see and although it's not the biggest market, it's certainly not the smallest either.
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