I had a guy call me from my craigslist ads and he is about to face foreclosure. Is there anything I can do with this scenario?
Property Details:
Should I move onto the next deal or try to wholesale this?
How many months is he behind on payments?
3 payments
No idea how experienced you are.
Do you see a deal here? If so, how would you set it up?
If you were to wholesale it, who would be the likely buyer? What would they see in the deal?
Question, has the foreclosure process began yet? If not he may not be in as dire circumstances as he believes. With the numbers provided, a rehabber is looking at $25,000-$30,000 profit, which some would jump on and some wouldn’t touch with a ten foot pole. If you lock it up under contract, and can’t move it to a rehabber, you may have to inform the seller that the spread isn’t enough, and start talking about a short sale option. I know in my state, Texas, short sales can not be assigned. I don’t know if that’s standard in every state, but I’d check to make sure in your state. If that’s the case, and it comes to a short sale being the only method you can use to attract a buyer, you could still birddog the property, even if you can’t assign it. It would be a shame to put as much effort into the deal as you have, and have to walk away.
PS: you may even consider purchasing the property yourself with hard money, or private investor money, but only if you think you’re comfortable handling a flip on your own. If that idea interests you but you’re still a little skidish of running your own flip, you may be able to partner with a more experienced investor and do a profit split of some sort.