I have a broker who wants to work together to help find buyers for pre-foreclosures and foreclosures, etc. Can I wholesale these properties, even if some are on MLS?
Thanks! ???
My feeling is you can wholesale anything if you buy it right. It’s harder on the MLS because everyone can see the price listed and “sold” if you buy it. But, I’ve seen it done. In fact, when the market was better last year, I would see a larger local investor company buy a house and put it back on the market 1 or 2 days later with a $15,000 - $20,000 price increase. Don’t know if they are still trying that in today’s market.
As far as wholesaling foreclosure (REO) properties, it’s more risk because banks don’t let you flip the contract, i.e. you can’t do an assignment. You would have to close on the property.
Question: When you work with a real estate agent on a non-forclosure listing from the MLS can you assign the contract?
Yes, you can assign any contract as long as you have and/or assigns in the wording or it states somewhere else in the contract that it’s assignable.
OK - that’s what I thought.javascript:replaceText(‘%20:)’)
Again, when working with realtors on non-foreclosre properties from the MLS, do you still need to be able to provide proof of funds? OR is that only if you are offering on a foreclosure?
Also, how much of a deposit is typically asked when going through a realtor?
Thanks!
In my area (St. Louis), any realtor will ask for proof of funds or pre-approval letter with your offer. If you have a hard time getting a pre-approval from a traditional lender, you could try and get one from a hard-money lender who doesn’t look at your credit.
I usually put $500 down, but realize that is not put in escrow until your offer is accepted. There is no set amount.
I seen on a website about REI where the investors would give a ten dollar check with a purchase offer and they say they will close in 45 days that the seelers would usually say “okay”. They also say in there that it’s all about presentation in your speaking, (confidence).
Your thoughts?
I’ve never tried to put down less than $500. If I was a seller that needed to sell and no one else is making me an offer and the best I could do was $10 down, I may take it. However, it would be my last choice. If someone is only willing to put $10 down and they want me to wait 45 days, I wouldn’t think they are very serious. It would have to be a really good sales presentation.
As investors, we all know we can write a contract and have ways out where we can get our deposit back. However, the only thing the seller has to feel confident is the amount of money down.
I think it’s perception more than anything, but just my opinion.