Whole Saleing Pre-Forecloseures
Is it possible to whole Sale homes in pre-foreclosure? And if so, how? Please help a Sophmoric rookie who want's to move forward. Thanks in advance! 
Is it possible to whole Sale homes in pre-foreclosure? And if so, how? Please help a Sophmoric rookie who want's to move forward. Thanks in advance!
Sure, why not? As long as you have it tied up for a certain price and you have the deed, no problema.
This is how you do it. Lets say someone owes a house worth 100k, they owe
50k and are behind in payments 5k.
You offer them 5k cash to take over their loan subject to for 50k, and make up the back payments of 5k. You have essentially purchased the property for $60k. You get the deed, open up escrow as an "assignment" contact your new buyer and sell it to them for 65K. Your new buyer give you $15k, $5k of which you give to the seller the other 5K goes to escrow for back payments. You contact escrow, assign your new buyer the escrow and they close it. You have just made $5k. One last thing, make sure you have clear title before you give the sellers any money and have escrow pay the back payments when title is clear.
Best Riches,
Jeff Adam
_________________
"The only place success comes before work
is in the dictionary."
[ Edited by JeffreyAdam on Date 02/12/2004 ][ Edited by JeffreyAdam on Date 02/12/2004 ]
I do it all the time!!!!! It is great.
This how I do it: I keep a list of qualified buyers who want to buy a house cheap. I have investors, real estate agents, and banks who want to get rid of properties. I will get a list of properties that are going to be foreclosed on. I call the buyer who wants a house in that area, they look at the property if they love it, we set up the deal and proceed to the closing and then to the BANK$$$$.
Lori
[addsig]
Thank you so much JeffryAdam and Tinman (Lori)! Maybe I just read into these things a little too much, I was just intimidated by the whole process of the foreclousure. Your responses are are well recieved. Thanks again, and best of luck to both of you guys!
How often does a property pop up that has 30-50% equity that the seller is willing to part with? I hear people talking about those kinds of properties all the time, but I can't seem to find them in my part of the country. I live in northern Idaho and it ain't a teeming metropolis here. Currently, it's a huge buyer's market and most things go for FMV very quickly. My RE broker said that it's not possible in the current RE environment.
Can these deals still be found given the demand for housing? If so, it seems it would take a lot of work to find these deals and I already have a full-time job.
Please advise. Thanks.
It is all in your marketing. Try going after
"absentee" owners in your area. You can get this information from a title company. You need to send out at least
200 letters a week to be successful.
Best Riches,
Jeff Adam
[addsig]
Hi Jeff. Thanks for the advice.
So, a title company will give me the names and addresses of absentee home-owners they have contact with?
Given above, my letter will somehow convince absentee owners to part with large amounts of equity? Why would they do that when they could just sell the house at FMV in my area?
What sort of offer would be included in this letter?
Thanks!
Absentee owners generally do not know what is going on with the market in that area when they are out of state. Besides,
they have tenants to deal with!
Send them a cash offer. I guarantee if you send 100 cash offers, you will buy
one property. Yes, your title company can give you a list of all absentee owners in a specific city.
I would recommend you offer 65-70%
of market value.
You need to purchase Ron Legrands
material on this site. Go to Shop under consignment and purchase the cash flow modules. You need to educate yourself or you will be asking questions here all day on this forum.
Best Riches,
Jeff Adam
[addsig]
Hey, thanks for the advice! I've talked with a title company. They will do a "farm" search for $10/hr and put it on a disk (which costs $2).
Thanks again.