Pre-Foreclosure Lead is this a good deal?

Question

Hi Guys my name is David I'm just starting out in wholesaling Pre-Foreclosure homes. I have a tone of leads and all contact info and haven't made any calls because I have been extremely nerves on what to say. Maybe you guys can bless me with some advice on how to approach the owners, and if this particular lead below is a good deal or not?

Record TypeNTS  Recorded Opening Bid$35,417.00Default AmountUnknownPenalty & InterestUnknownOriginal Loan Amount$62,550.00Loan Balance$32,493.00Recording Date4/25/2019Recorded Auction Date6/4/2019Judgment DateUnknownJudgment AmountUnknownEstimated Value$210,700.00

NTS

Recorded Opening Bid

$35,417.00

Default Amount

Unknown

Penalty & Interest

Unknown

Original Loan Amount

$62,550.00

Loan Balance

$32,493.00

Recording Date4/25/2019Recorded Auction Date6/4/2019Judgment DateUnknownJudgment AmountUnknownEstimated Value$210,700.00

4/25/2019

Recorded Auction Date

6/4/2019

Judgment Date

Unknown

Judgment Amount

Unknown

Estimated Value

$210,700.00

Lydia R. · Answer

@David Folling You will never do a deal if you dont pick up the phone! Get over your nerves and get out there. Also, the only way to know if its a deal is to know all the debt on the property (payoff of mortgage and any other liens), the ARV for the property and the rehab cost. No spreadsheet is going to give you that info so there is no way to know until you get that info.

I always caution new wholesalers about approaching preforeclosure homeowners because its the blind leading the blind. These people are trusting in your ability to solve their problem and you dont really know of you can. You leave yourself vulnerable to a lawsuit if you are unable to follow through and the owner decides to sue you.

Daniel Hixson · Answer

Account Closed Do you include an agents fees and closing costs on that formula? Ive been talking to an agent to have him help me with my first purchase but ive notice between closing cost on buying preforeclosure and closing cost on reselling im wasting away about 10k. any tips or advice on these?

Account Closed · Answer

@David Folling also find out frombthe owner if there is a back payment amount as well. If there is it will change the  whole thing. The more the owner owes the less of a deal it is if the equity becomes to low

Account Closed · Answer

@David Folling. I was just at the auction in Fulton county today.  That 213k value is your ARV. And when you subtract the balance owed that's still a nice spread. Here's the formula

ARV *70%- RP(repairs) - your fee(assignment fee) = the highest amount you should offer seller

Then turn around and check comps in area and add about 5k to 20k to that price and offer new price to buyer .

Example:

Offer seller 78k turn around and sell to buyer for 88k. Difference is 10k which goes to you (aka assignment fee)

Amita Harden · Answer

@danielhixson You don't need an agent to do your deals. And closing cost the buyer pays (that should be in your agreement with the buyer contract)  By definition a wholesale Real Estate Investor is someone or a group that signs an agreement(legal agreement) with a motivated seller for a discounted amount (ARV FORMULA) then assigns interest in the property over to a buyer for a higher price than what was offered to the seller. The difference from the amount offered to the seller and the price given to the buyer is the assignment fee that the wholesaler receives at the closing table after all parties have received their money(motivated seller)  or property(cash buyer). An agent is not needed . That agent will receive 3%-6% basically a commission fee . You don't need a real estate agent or broker as a wholesaler because you deal directly with the owner. Contact the owner always  😊  Having a realtor is ok if you need someone to give you the comps in the area. I'm not knocking them but 98% of them don't know what wholesaling is at all.  That realtor is looking for a commission whether they do anything or not do keep that in mind

ps - study all of flipman ty on YouTube (ALL THE VIDEOS FROM THE VERY FIRST ONE. He also gives you the contract or agreement that you use with the seller and buyer for free) legal agreement  free. Then look up MaxMaxwell-YouTube study all his material.

Wholesale to millions Khang-Lee. He is good to check out his interviews with even more wholesalers

Then go to myreipro.com. -30 day free trial  so much info.

Then download deal machine

Your welcome 😊

Pre-Foreclosure Lead is this a good deal?

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