Wholesaling Process for Pre-Foreclosures and Foreclosures

[Gina C.]

Hi guys,

So I recently became a landlord and I’m testing other ways to make money in real estate. I read up on wholesaling and wanted to try my hand at it. I bought a list of homes in the early stages of the foreclosure process (in my area) and i definitely want to start a mail campaign to get a list of motivated sellers, but I want to make sure I’m going about it the right (and legal) way. So I have a few questions regarding the wholesaling process in Foreclosures and pre-Foreclosures. Feel free to answer one, some or all of the questions: 

P. S. - I’m in North NJ btw, in case that matters. 

Is the process any different than in wholesaling a house that isn’t in default?

Is it easier to Wholesale a pre-foreclosure than a foreclosure? 

Any advice you can give on how to be successful in wholesaling in general (not specific to Foreclosures)?

How do you build your network of cash buyers?

Do you ever go out to physically meet homeowners whose homes you’re looking to buy, or do you do everything remotely?

What kind of contracts do you use for your wholesaling and assignments?

How long did it take you to do your first wholesale transaction (from when you sourced the home to when you successfully assigned it)?

I know that buying a foreclosure can take a long time. How much longer does it take to wholesale a preforeclosure/foreclosure? Or is wholesaling not affected by the longer timeframe?

What safety measures do you implement to: ensure you have a serious buyer, ensure you won’t be forced to buy the home in the event that a buyer backs out or you can’t find one, and to ensure you ensure everything is being done legally?

Do you need a lawyer to facilitate wholesale transactions in Northern NJ, or can you use a title company up here as well? I’ve heard mixed answers. 

Any help or advice would be appreciated. 

Thanks!

[Jay Hinrichs]

Gina for some constructive feed back if you want to go down the path.. and by all means you can try it but you I will bet 90% will just throw your money and time away.

but I would put the energy into finding your cash up front.. to me most of the folks go at this backwards.

and not just some guy on the internet who says ya put me on your list.. remember half of them are full of crap as well and have no means.

find true players in the market.. there will probably only be a few.. get meetings with them.. know them personally.. then if you scare up a deal you KNOW you have the cash behind you to buy it straight away.

This is an example I rolled up on a house about 10am on a Thursday and it was going to auction the next day at 11am... Hoarder extreme ( which is my specialty )  people are in chairs on the porch clue that house stinks bad.. LOL... we get to talking  they wip out a contract from a wholesaler.. I say well your going to lose the house tomorrow.. I am here to tell you that.  after about a half an hour of denial I got them to call the guy on the phone.. he said he was eating lunch with his family and could not talk.. LOL..

I told them you really need to go file BK there is some equity in this and your going to lose it all. the condition of the house is such that its not going to over bid and you will get nothing. zilch on the street. the guys that buy these at court house will simply evict you .

they take my advice spent the 500 bucks and BK  well about 9 months later they call me.. they only want to deal with me.. I buy it.. give them about 50k in cash for their equity.. sold the house to a flipper subdivided a lot off the back that took some time and money and we made a tidy profit.. win win.

Wholesaler just about lost the entire deal for them.. .and this has happened numerous times.. I could tell wholesaler was only interested in himself he could care less that these people would have lost it all.

that's the rub on so many wholesalers.. NOT all I don't want to get blasted painting that brush stroke but its far more than it is the good guys.