Bankruptcy

Bird Dogs, Wholesaling
1

Hello,

I’ve been reading this forum for quite a while and all of you have been a great help. I have a question of my own that I am hoping you can help me with:

I found a vacant house that is in Foreclosure and has been since Sept 04. I can’t find contact information for the owner so I called the law firm that filed the LP to see what was going on and they said that it is still in foreclosure and that the owners have filed bankruptcy.

  1. Can they sell the house to me in bancruptcy?

  2. Are bankruptcy’s public record? Can I go to the courthouse and find from that case their contact information?

Also another question before I make my first deal on another house I am looking at.

The owner wants $40,000 OBO. The ARV is $70,000 based on comps in the area.

If I could get the house for between $25,000 and $30,000 and it needs $12,000 worth of work would that be a good deal?

Keeping in mind that I would have to use a HML at monthly payments of $500 plus 4 origination points (I’m assuming that is 4% of the sale, am I correct there?)

I would be doing the rehabing (My FIL is a contractor) as I don’t think there isn’t enough profit margin built in for me to wholesale it.

Thank you so much for your assistance!

Michelle

2

Hello Michelle, I would like to offer some of my experience. Getting a loan from a HML for under $50K is hard to do. It is easier to get a $1M loan than it is a $50K and under loan. I hope that you are able to go with a traditional lender first. Use a HML as a last resort.

3

Thank you for the advice but I was going to go through Investwell which doesn’t have a loan minimum.

I just called an checked just to be sure :slight_smile:

-Michelle

4

Hello Michelle, OK, I hope that they can help you.
GOOD LUCK!!