New Wholesaler- Needs Foreclosure Feedback

I found a foreclosure property, row home, listing for $47,500 but I want to make a lower offer. I’m not sure how to wholesale this if I were to get it. Here is the exact listing.

Large 4 bedroom town home located conveniently off bus line close to central business district and nearby community shopping. This house in need of repairs, however the same is reflected in list price. Corporate listing being sold as is. Addendum, NCCBOR contract, unconditional pre-approval, 5% deposit (15% for investors) required with any offer and proof of funds. Investor contracts are subject to a 3 month re-sale/refinance deed restriction. Call listing agnt for documents necessary to submit offer.

I would appreciate a season investor’s feedback how to handle this as a wholesale. Thx.

Based on the description, the only way to wholesale this deal is by doing a double close. Honestly if this is your first deal I wouldn’t suggest trying it unless you can find a local investor who has done double closings and will walk you through it.

The seller does not want someone to wholesale this deal that’s the reason for the deed restrictions. They are doing what they can to try and prevent it.

Please excuse my novice-ness. :help I have a question here… why would the current owner want to restrict the sale?

Corporate listing means that it is owned by the lender. Lenders just tend to be this way about their foreclosures. They want to discourage investors from wholesaling, so they put the clause in there.

I guess I would want to know the appraised value on the property first.

I would offer under a s-corp and sell the s-corp to avoid the 3 month deal.

[quote author=shortsalesonly link=topic=28039.msg131023#msg131023 date=1179600143]
I guess I would want to know the appraised value on the property first.

Hello shortsalesony,

The estimated property market value is $115,000. The estimated value range is $109,000-$117,000 on this property. I’ve done some homework for this property and had a couple of conversations with the realtor. They turned down the last offer which I believe was too low.

I would love to birddog this. I have all of the pertinent information to pass on including pictures.

Good question…
Most lenders today won’t loan money on a flip, they want the title to be seasoned; in one persons name 6 months to a year. From the little information here, I would suggest negotiating a price, start out at an offer of about 20% of asking with 10 days due diligence once a number is agreed too. This will give you 10 days to sell the property to an investor for a few bucks more than the number you paid. There are a dozen ways to profit on a deal like this, but this is one.