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  • **How to Offer a lowball offer to a Preforeclosed Home**???

    Hello Everyone, Its a pleasure to be here among you guys.


    Purchase Price: $20K
    Homeowner Owes: $100K
    Value of Home: $200K
    Comps in the area: 165K - 230K

    Based on the fictional Information above:

    How are you able to offer a low ball off to the homeowner going through per-foreclosure, if the Homeowner still owes $100K on the mortgage. Me ( the wholesaler) Do I have to negotiate with both the Homeowner and the Bank to reduce the price of the sale to lets say $20K. Can anyone tell me how does it work?? Thank You

  • #2
    First you likely aren't going to
    reduce the price to 20k on a
    200k house... where the homeowner
    only owes .50 on the dollar...

    But, what you are talking about
    is a short sale...

    Instead... buy the house for what
    homeowner owes and then sell it...

    When you can buy at .50 on the
    dollar... life is good... VERY GOOD..

    Comment


    • #3
      Originally posted by David Alexander View Post
      First you likely aren't going to
      reduce the price to 20k on a
      200k house... where the homeowner
      only owes .50 on the dollar...

      But, what you are talking about
      is a short sale...

      Instead... buy the house for what
      homeowner owes and then sell it...

      When you can buy at .50 on the
      dollar... life is good... VERY GOOD..
      Thank You, I am just trying to figure this out from the Wholesaler point of view, What is the best scenario for a wholesaler to wholesale a Pre-foreclosed property to another In-Buyer (Investor).

      Comment


      • #4
        1. Get it under contract for $105K ($100K +5K late fees)
        * Assign the contract to another investor for a fee

        2. Get it under contract for $105K
        * Blast your buyer's list & try to double close (my favorite)

        L.Souza-GA

        Comment


        • #5
          Practice offer

          First, consider the comps. For my liking, the spread is too large.
          Consider looking for comps less than six months old. Second, choose properties similar to the subject property.

          If the bank is involved, consider a short sale, otherwise develop a strategy to get the home owner to assign the property to you. BUT, check with a seasoned investor and/or legal professional to steer you in the right direction.

          Comment


          • #6
            Fictional is nice. Me, use lowest comp for area. Find out everything owed by seller, property taxes come into play, HOA dues, utilities that stay with the property, etc. plus repairs and the cost of getting the seller out. I like to find retail buyers for preforeclosure buys and generally have one in tow but of course other exits are good.

            Comment


            • #7
              James,

              Did you get it done?

              L.Souza-GA

              Comment


              • #8
                Not that one, That scenario was just fictional (it was made up) I have learned so much since I posted that question. I realized that a short sale is when you negotiate with the bank to cut the amount owed and buy the property at a lower price than what the house owed on it!!!

                Right Now im at my beginning phase, I am actively looking for buyers using this website http://www.findcompsnow.com/index.php
                To find out who is buying houses cash in my area (check it out if you haven't seen it yet) I have gone a couple of times out to houses doing the cold door knocking thing, but nothing yet.

                Pretty soon i am gonna start marketing for Motivated Sellers and Buyers, but, Where I live I cannot put out bandit signs which was gonna be my biggest form of advertising.

                -Thank You for asking

                How about you have you done any deals lately???
                Originally posted by L.Souza-GA View Post
                James,

                Did you get it done?

                L.Souza-GA

                Comment


                • #9
                  Yes I have. working on 2 rehabs as we speak and maybe another one on the way soon! haven't worked with SSs for about 1 yr or so...

                  L.Souza-GA

                  Comment


                  • #10
                    Originally posted by L.Souza-GA View Post
                    Yes I have. working on 2 rehabs as we speak and maybe another one on the way soon! haven't worked with SSs for about 1 yr or so...

                    L.Souza-GA
                    Do you actually go out and get those deals, or do you buy the contract off of a wholesaler??

                    Comment


                    • #11
                      I opened the doors for a few people that contacted me these past few yrs. regarding wholesaling but no one has brought any deals as of yet. Primarily my deals come from the MLS where I make offers direct to the listing agent or from bandit signs

                      Comment


                      • #12
                        Originally posted by L.Souza-GA View Post
                        I opened the doors for a few people that contacted me these past few yrs. regarding wholesaling but no one has brought any deals as of yet. Primarily my deals come from the MLS where I make offers direct to the listing agent or from bandit signs
                        Do you primarily focus on REO'S?

                        Comment


                        • #13
                          REOs & FSBOs

                          Comment


                          • #14
                            How accurate is the findcompsnow.com website? I see it uses Zillow, and they can be WAAAYYYY off as we all know.

                            Comment


                            • #15
                              You'll actually find out...

                              You can't bandit signs
                              in alot of places...

                              Hence,... the name...

                              Comment

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