Hey everyone,
I have been looking at articles and this message board for a few months now, and am finally getting the stones to ask a question here. Here goes. I’m interested in wholesaling purchase contracts from preforclosed homes. What is the wholesaler responsible for in the preforeclosure process? Do I have to get the property inspected? the title search? Or is all of that the responsibility of the rehabber/investor? Also, if there is any helpful information anybody can give me, I’d greatly appreciate it. Thanks in advance!
Howdy M_bognot:
In pre-foreclosures you need to move really fast. Get all you get done as fast as possible. Once under contract order the title commitment thru the escrow company. There is usually no charge for this is they will be the closing agent and issuing the title policy. Inspections cost money on average a few hundred. It is not absolutely necessary to even have an inspection especially if the property is in really bad shape. I would just wait until you get a buyer and let them decide if they want one or not.
About the best help I can offer is to have a list of buyers that will jump on your deal once you find one. In some areas buyers are everywhere and in some there are not so many. Get to know what they like such as area, how much rehab they will take on etc.
The process is so quick that by the time you meet the sellers you only have a few weeks to find a buyer and get all the paper work done and get the title report and order the payoff. All this takes time so some of it can already be done as soon as you get the contract. Do all you can as fast as you can so you will not waste valuable time at the end
LOL
Thanks for the great info! That answered just about all of my questions.
I also want to thank you because I am also interested in pre-foreclosures wholesaling and rehabbing. I want to buy an option on it instead of a regular purchase contract. Less risk involved.
And if you cannot assign the contract before closing?
Lose my option fee which will only be 10 bucks.
akademikjeanius,
When you say opition, you mean option to buy? How is this different from regular purchase contract? Please explain.
And the home owners who HAVE to have thier house sold by the end of 90 days?