Hi, my name is Carol (27) and Im from South Africa. Yes, way in Africa and I came across BP during an enjoyable read of The Book on Flipping houses with J Scott.
Even though Im in a different continent altogether, I still believe that real estate basics/concepts should remain similar globally, with the exception of the big L “Law” and this I have taken into account.
Real Estate experience: I have owned a single 2 bedroom home since 2013 which ive used as a rental property. Currently im in the process of expanding my portfolio which will include flipping single family homes undergoing foreclosures.
My question for today is, have you ever approached a foreclosure –home owner before the auction date?
Well im currently considering this route wholeheartedly, thinking if I can approach someone whose home has been listed as a foreclosure before the auction date, negotiate with them to pay their outstanding fees provided that they will sell their home and in turn split the profits.
- 1.But what does the law say about this?
- 2.What sharing ratio would you suggest for this kind of strategy?
The way I think of it, is that the advantage would be as follows:
- 1.Eliminating competition by avoiding the house to be auctioned.
- 2.The owner will get some profit, unlike their home being foreclosed and they are left with no money.
- 3.During reselling phase, the owner would still be occupying the home until the purchase date.
And many more, but basically both parties will win.
What is your take on this strategy?
Do you have educational readings that i should consider?
How do i approach people facing foreclosures?
Awaiting your responses
