All Forum Posts by: Romont Johnson

 @Jeff Wallenius The last person I would want to use this strategy with is a deadbeat.  They most likely wouldn't want to keep the home anyway.  I'd be targetting people that have had their home 10+ years and are facing foreclosure due to a short term financial situation like garnishment or loss of a job.  Basically, there would need to be a foreseeable path for the homeowner to make rental payments and hopefully get another mortgage in 90 days.

My market seems to be saturated with wholesalers offering to buy homes for cash.  Are there any proven money-making strategies that'll work with homeowners that want to stay in their home?

I have a RE investing idea after watching a family friend lose their home to foreclosure and I'd like to know what the experts think about it.

I'd like to offer homeowners in preforeclosure the opportunity to stay in and possibly repurchase their home. I would offer to purchase the home at the amount that is currently owed to the bank and give the homeowner 3 to 6 months to repurchase the home (well below ARV). If they fail to secure a loan they can rent the home at an agreed upon rate.

Example: Amount owed is 100k with ARV of 200k. Buyer repurchases in 90 days for 130k.

Has this been done before? What are the pros and cons? Are there any pitfalls I should be aware of? Would this type of deal entice cash buyers? Any advice would be greatly appreciated.