Found a Forclosure. What next?
Send a letter to the owner? Do I get approved from the HMLL first then contact the owner?
Any help!
Thank you,
John
Find a BUYER. Go get yourself an experienced investor-- find out what they want and need in a property in that area so you know what you have to pay, and/or what terms to ask for.
No business owner in their right mind would order inventory without knowing who their customers are and what they want, but real estate investors do it all the time. In fact, most do it without even having a theoretical customer in mind, let alone a single actual customer.
IMHO, you’re too new to have any other exit strategy-- so forget about rehabbing and retailing, and/or renting this one out. Forget the double close, too. Make this an easy deal for yourself: Match it to a buyer, get it under contract, and get it assigned.
If you are like most birddogs and wholesalers and you’d rather struggle-- just do the following:
- Strip all the profits from the deal
- Push “deals” you wouldn’t do yourself
- Overestimate the property’s retail value
- Underestimate the repair costs
- Fail to negotiate terms
- Ignore the business case
- Attempt to force investors to make Last-Minute Decisions
- Don’t qualify your investors
- Chase just one deal at a time
- Chase one investor at a time
The best Bird Dogs make their money by facilitating deals and do more than just provide pictures and addresses of properties. They provide information and resources necessary for making deals work. They know their market, they know their customers and they know the value they create. This value drives the money an Investor is willing to pay.