I have a feeling it means to find a deal for another investor to capitalize on and have you take a cut or assign it to another wholesaler for a small fee, is that about right?
If so, I have a deal working in Colorado Springs, Co. The owner is getting divorced and is in foreclosure. No sale date has been set so far, but he is 3 months behind. He wants out with $10K to split with the ex and start fresh. The owner said property is worth $170K and he owes $135K. He said he has no other leins on property. I have not had a title search done nor signed anything yet. My original thought was to go for a short sale because it needs paint and a bathroom remodel for sure. I wanted to wholesale it to a rehaber and collect $18,000 from the deal with the hopes of shorting it to $110K or less. So $170K less the $110K to the bank/lender, minus $18K to me of which I’d give $10K to the original owner then drop it another $10K for rehab and closing costs should leave the rehaber about $32K in profit.
I’m just so new to investing that I am willing to let someone else walk in and take the deal for a small finders fee of say $3000. Is that too much to ask for and is this the way to do it? Any help or advice before I take a contract to the homeowner this Saturday. If I don’t get any offers to help, I’ll just sign the deal and try it. It all looks good on paper except I don’t know what the bank will say about the short request.
Birddogging normally means that you find a deal for an investor and he pays you for the lead if he buys the property. If you actually put the property under contract and then assign that contract to another party, then that would be wholesaling.
I agree with KDHASTEDDT(Keith) what would be the banks motivation if there is 35k equity in the property. They could just take it back at Auction and come out in good shape. Now having said that why don’t you get a contract on the house and just wholesale it. Make sure your contract’s buy and sell have both side pay half closing and you take what’s left after every thing is settled. If it goes to foreclosure neither one of the owners will get a dime more than likely.