Starting out Q's

[Danny Day]

BiggerPockets has been by far the best resource I've had for RE advice. I've got a few questions I'm trying to get the kinks out of before I go full force.

I'd like to get into pre-foreclosure / foreclosed homes. My capital is limited, so I figured I could wholesale some deals - and that would help me out getting my feet wet.

I know in wholesales, you must get the house under contract for a specific price, and then contact your list of investors to buy. I'm building my list of investors right now. Once you have the investors, and you start finding property... where do you get the contract from? RE Lawyer?

Also, I've heard that many title companies stay clear from dual escrow deals due to the high chance of fraud. Is this committing fraud by dual closing without a broker?

Here is my situation: I've got a pre-foreclosure on my hands right now thats got about $15k in equity in it, and they want around $87k to walk away. I'd love to jump on this because the area is great, and home values are increasing - but I have no investors in this city yet! Could I bird dog this deal and hook someone else up? Where could I go to do this?

Thanks in advance, I'm sure I'll have many more Q's. Tomorrow I'm heading to my 1st foreclosure auction - just to get a feel of things.

[Nick Cifonie]

Hi Danny...

I'll answer your direct questions 1st...

Q 1- "Once you have the investors, and you start finding property... where do you get the contract from? RE Lawyer?"

Send me an email or private message here with your email address and I'll send you a simple contract that would work.

Typically when you're wholesaling you use a simple contract rather than the local Realtor one, although you can. (there's a lot of "stuff" in those that's not needed)

You can use a RE lawyer if you like as well.

Q 2- "Is this committing fraud by dual closing without a broker? "

No, having a broker or not has nothing to do with it. "Fraud" can be a lot of things, and I can't write out everything we'd cover if we were on the phone, but the easiest and best suggestion I can give is be upfront with everyone and use common sense.

I'd suggest either working with someone who's had some experience, or consult an attorney who's handled flips in your area already, and have him step you through your 1st deal. (find one at a local REIA if you can)

Another thought is grabbing a program on flipping/wholesaling, although you can get almost everything you need from here or the web if you're patient and willing to seek it out.

Q 3- "Could I bird dog this deal and hook someone else up? Where could I go to do this?"

Sure you could bird dog it... I'd start by "Googling" in the area the deal is in to find investors. Try "sell my XYZ house fast", replacing XYZ with the city/state. You'll get a list of investors, start calling.

Another thought is to get a contract (or use a simple option) and market it yourself of Craig's List, etc..

When you're at the auction, realize the guys bidding are the REAL cash buyers in your area. Introduce yourself as a local investor/wholesaler and ask if you can call them at a later date to find out what they're looking for... I wouldn't go into it at the auction, they won't have that mindset.

Then a day or two later call and remind them how you met, and find out what areas they buy in, price ranges, etc.. They'll be great to put on your buyers list.

Nick