I’m just starting out in learning about wholesaleing and preforclosure strategies. One question that is still a mystery to me in the preforclosure process is-- if you can successfully negotiate a property in preforclosure, and purchase it, what generally are the options for the current resident (former owner)? What are the acceptable options for me to offer them?
If there’s equity, you can give them cash at closing, if not, you can pay their moving expenses, give them a couple of weeks after the sale to move out, refer them to a landlord with a vacancy… use your imagination.
A fair offer would be a 50/50 split on the projected profit. And I would recommend having the property vacated as a requirement to closing the transaction with them. My 2 cents. You don’t need the hassle of an eviction resulting from “seller’s remorse”.
Sorry, my question was in regard to what to do with them living in the home. So you are saying just to basically stipulate that they move out. Makes sense, thanks.
You stipulate that they move out, but not necessarily the day of the sale, and you could pay a couple of schoolkids $50 to help them pack and load.