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It's doable if you have the ability to negotiate a purchase price of 30 cents on the dollar. Some may consider that a little on the predatory side if it were a preforeclosure, simply because you're taking so much from the seller. But that's a matter of opinion as far as I'm concerned as long as they get something. Personally, in most scenarios, I wouldn't see a need to negotiate that much from the seller even if I knew I could. $50k through an assignment on a $100k ARV property is a lot more difficult to do than making that money on a $500k property. I've gotten more than $50k through an assignment on a property that was worth $650k at the time. So yes it seems like you know how to run your numbers and hypothetically that's a way to do it.

You've got to give people a little more time to respond. It doesn't move that fast around here in my experience.

I'm not entirely clear on what you mean by "offering the seller their own equity". When running your numbers on a preforeclosure or most other deals, there are 2 things people are looking for:
1) equity
2) cash flow

Here in CA, cash flow is a rarity, so all deals are based primarily on equity (as is, forced appreciation, short sale, etc). If you "wholesale" a deal to another investor, it's because there's equity in it.

Could you elaborate a little more on wht you mean? Maybe an example would help.

When I used to door knock, I would go staight to the recorder's office. I also had realtytrac, but the leads were too old for me. I went to most of the recorder's office's for the counties along the coast of California. On a couple of occasions, I found people who searched for preforeclosure leads as a part of their job. They offered to send me leads on a regular basis, they just added me to their email list. To this day, I get emails sent to me for free for one county.

Investor here over in Contra Costa County. Feel free to contact me to see if there's any way I can help. Welcome to the forums.

Hi Andy,

I'm with an REI company here in the Bay Area. We will be having SFRs throughout the state including the Bay Area at wholeslae prices. If this is something you're interested in, feel free to contact me.

Phil

My personal experience is primarily in knocking on the doors of preforeclosures.

You can also:
-do direct mail campaigns
-cold call
-Warm market
-pass out business cards to EVERYONE you meet. Continually marketing yourself whenever you have a chance.
-networking events
Various ads: newpapers, signs, radio, internet

I've gotten quite a few leads just by telling people what I want. Eventually my friends just started telling me whenever anyone had something to do with real estate and there might be a chance that I could do something. Both today and yesterday, I recieved calls for interested/qualified buyers from 2 close friends who just called me and gave me their info, telling me that these people were waiting for my response and that they haven't spoken to anyone yet.

You might consider buying the deal WITH an investor who can help you fund the deal or whatever the issue is. If not, I personally would send them an offer with the assignment clause, you certainly don't have anything to lose. If the agent doesn't like it, remind him/her that you can simply offer it through an agent that IS willing to look out for your best interest. Just my thoughts. If anything, have fun with it and learn something.

We're located in the Bay Area and we'll buy fixers in eastern Contra Costa where has been serious drops in prices because we know the area. Granted, we're very careful about buying, but we'll buy to flip if the discount is there. We were at the REDC auction in Sacramento bidding on properties in Contra Costa County this past weekend.

We'll buy in an area if:
We know the area and the profit potential is there. Basically if it fits our specific investment criteria. The market is just another factor in the analyzation of a deal.

For the incomplete work, I'd make sure that there won't be any permit issues with the city and county.

I doubt the bank would accept anoffer with an assignment clause in it, and in my experience agents aren't fond of them, but I wouldn't be afraid to do it if there isn't much interest in the deal. If that were the case, I'd question the real ARV and estimated work needed. If the deal isn't really known and you can find investors who would buy it, you can pitch the numbers to them and set up a preagreement for them to give you a finders fee. Most experienced investors will tell you how they would work with you in that scenario and you can then determine if it's acceptable to you.

I've found the following to be helpful in most things:

I "get used to" doing things outside of my comfort zone. I've come to the conclusion that we're almost always going to be not-so-great in all things that we are not experienced in. So I go into new experiences with the understanding that I don't have to be perfect and it's okay because it's part of the necessary process to becoming oh-so-better. This perception takes a lot of pressure off of me when I focus on it this way. Hope it helps.