New Mexico Foreclosure. Flip or Wholesale?

New Mexico Foreclosure. Flip or Wholesale?

Provo, UT · Member since 2016 · 2 posts · 0 votes

Hello, I'm currently a BYU student in Utah, but I grew up in Los Alamos, New Mexico. I have been drinking in everything that I can on Real Estate investing for several months, and I can't wait to get started. I know of a potential deal in Los Alamos, where a home is being foreclosed on in a very desirable area. All of the other homes on the street sell for over 400k, and the house is on one of the best lots on the street, with an excellent yard. The home would need about 30-50k in rehab, a new kitchen, garage door, and maybe new windows, but the home itself is in good condition. I know that it would be prime for flipping, but I don't know if it's a wise idea to try and flip a property when one, I'm still a poor college kid and can't afford to make the payments while work is being done and two, I'm a ten hour drive away from the property. I'm interested in wholesaling it, but I don't know how to secure the contract without funding first and then turn around and get it to an investor. Any thoughts or help would be greatly appreciated!!!

0Reply
22 views

Most Popular Reply

Investor · Orlando, FL · Member since 2016 · 1k+ posts · 780 votes
10y

I have been buying and selling residential properties for 17 years and not once have I put up more than $100 on a property. I am getting them under contract, putting $100 into escrow and making sure the contract allows me to assign the contract. Then I market the property to my buyers. If the amount of money I'm making on the deal is less than $10,000 I get them to sign an assignment agreement and they close with the seller and the title company pays me my assignment fee. 

But if the amount I'm making is more than $10,000 then I do a double close. Yes I have to pay for 2 closing costs but it is worth it. Also I get this set up with a title company that can take the funds from my buyer and uses it for my purchase. Kind of like a reverse close. 

I hope that helps. 

I started my RE investing career in St Louis Missouri buying and selling pre-foreclosure properties. Now I'm in Orlando FL and wholesaling other investors, as well as my own, properties to my list of buyers in Florida. Right now I'm marketing about 65 properties. And I'm in the process of marketing 26 multifamily properties in Chicago. 

See this reply in the discussion

3 Replies

Jump to latestLatest
  • UT · Member since 2013 · 164 posts · 55 votes
    10y

    Sounds like you need to partner, or give the lead to an experienced investor for a bird dog fee...

  • Santa Fe, NM · Member since 2016 · 32 posts · 16 votes
    10y

    Hi Joseph,

    I am a newbie investor like you and want to welcome you to the community. I am sure that someone at BP can give you a great advice about what to do with this property. Yet I want to put myself out for you and give my two cents.

    I work in Los Alamos but rent in Santa Fe. I am thinking about moving to Los Alamos one day in the future and buying my first property there. If you need help then count me in.

    I have a friend who manages her own property here and in Florida where her son was training before deployment. She loves to deal with local contractors and supervise them closely.

    On a different note. At local RE meetup, I became aware of Los Alamos real estate investor but have not had a chance to network with him. I can try getting in touch with him so that he could check the deal and give you better guidance.

    I wish you success on your first investment!

  • Investor · Orlando, FL · Member since 2016 · 1k+ posts · 780 votes
    10y

    I have been buying and selling residential properties for 17 years and not once have I put up more than $100 on a property. I am getting them under contract, putting $100 into escrow and making sure the contract allows me to assign the contract. Then I market the property to my buyers. If the amount of money I'm making on the deal is less than $10,000 I get them to sign an assignment agreement and they close with the seller and the title company pays me my assignment fee. 

    But if the amount I'm making is more than $10,000 then I do a double close. Yes I have to pay for 2 closing costs but it is worth it. Also I get this set up with a title company that can take the funds from my buyer and uses it for my purchase. Kind of like a reverse close. 

    I hope that helps. 

    I started my RE investing career in St Louis Missouri buying and selling pre-foreclosure properties. Now I'm in Orlando FL and wholesaling other investors, as well as my own, properties to my list of buyers in Florida. Right now I'm marketing about 65 properties. And I'm in the process of marketing 26 multifamily properties in Chicago. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.