Posted by Heidi W on March 19, 2002 at 20:55:55:
Urgh… - He’s got a loan (enough to get a forberance)
Well - ofcourse I’m happy for him. But that means no deal for me, at least not yet.
Still waiting for my 1st deal - but not waiting quietly…it’s time to get back on the phones.
I’ll keep y’all posted and thanks for the support!
Foreclosure Deal - Should I flip? - Posted by Heidi W
Posted by Heidi W on March 18, 2002 at 23:56:41:
I’ve got a pre-foreclosure deal pending with ~25-45K profit potential. Only problem is, I don’t have enough money to cure the default.
If I decide to ‘flip’ to an investor…what’s the most I should be able to get as my ‘finder’s fee?’
Thanks,
Heidi
Re: Foreclosure Deal - Should I flip? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 19, 2002 at 10:59:31:
Heidi, this kind of investing carries a unique responsibility. I’ve seen many new investors pursue preforeclosures without the resources to cure defaulted mortgages, hoping to flip them for a profit. Sometimes it can work, if you’re lucky. But it’s the times it doesn’t work that concern me.
People in the process of getting their homes foreclosed are shackled to a ticking clock. There’s precious little time to get their problem resolved. If an investor steps in and ties-up their property with a sales contract, leading them to believe their problems are solved, they will not (and cannot) pursue any other means to resolve their dilemma. If the investor does not have the resources to cure the default, s/he is gambling that a buyer can be found before the clock expires. This is gambling with the seller’s limited time, when they should be pursuing every possible avenue to avoid foreclosure.
If the investor is unsuccessful in finding a buyer in the limited time available, the owners are left with no solution…and a foreclosure on their credit report. My advice is to get an option on the property, allowing the owners to continue to seek other means to solve their problem. In addition, let them know that it’s possible you will not find a buyer in time, and that they should continue to search for solutions.
Yes, you could end-up having the deal sold out from under you. But, at least you could sleep at night knowing you haven’t misled the seller and surprised him at the last minute by not selling the property before it’s foreclosed.
Good Going Heidi! - Posted by Scot - SoCal
Posted by Scot - SoCal on March 19, 2002 at 10:17:40:
You’ve been working hard, nice to see you getting results. Can you share any further details like; what your going to do in you don’t flip? L/O? Is it under contract? Have you talked to the lender to see if they will ‘deal’? How did this deal find you?
Scot
Re: Foreclosure Deal - Should I flip? - Posted by James Harris
Posted by James Harris on March 19, 2002 at 09:33:29:
There is a program that I’ve read about, haven’t tried it yet. If you go to www.mac-enterprise.com , it will show you how to buy forclosures. Like I said, I haven’t tried it as of yet. Yet, I believe that it would work. God bless.
Re: Foreclosure Deal - Should I flip? - Posted by Mike
Posted by Mike on March 19, 2002 at 24:10:25:
I usually take $5k for a finders fee. But see if you can get more.
Re: Foreclosure Deal - Should I flip? - Posted by Sean
Posted by Sean on March 19, 2002 at 24:03:00:
You don’t need money to cure the default. Get it under contract and find a buyer. How much do the owners want to walk away with? If you need more time, get a postponement. This is how we do all of our simultaneous closings with preforeclosures. Email me if you want to partner on this.
Sean
Re: Foreclosure Deal - Should I flip? - Posted by michaela-ATL
Posted by michaela-ATL on January 08, 2003 at 11:48:20:
Stacy,
yep, very good post.
michaela
Re: Foreclosure Deal - Should I flip? - Posted by Heidi White
Posted by Heidi White on March 19, 2002 at 15:40:27:
Stacy-
Thanks for your insightful email.
I’ve found a partner who has ready cash to cure the default in time…and I’ll match their cash (in about 7 days post auction date) and cover the other half of our expenditures. Then we’ll both work on the getting it ‘semi-market ready,’ sell below market, and split the profit 50/50.
All I have to do now is get it under contract.
Wish me luck.
Heidi
Re: Good Going Heidi! - Posted by Heidi W
Posted by Heidi W on March 19, 2002 at 15:44:37:
No results yet…
I made calls to get this one going.
If I can pull it off - the plan is to sell quickly after doing a minimum amount of ‘fixup.’
Re: Foreclosure Deal - Should I flip? - Posted by bob
Posted by bob on March 19, 2002 at 09:53:53:
The address didn’t work. Ideas?
Re: Foreclosure Deal - Should I flip? - Posted by RTH
Posted by RTH on March 19, 2002 at 16:16:57:
Sean could you tell us more about getting a postponement.
Re: Foreclosure Deal - Should I flip? - Posted by MicheleCO.
Posted by MicheleCO. on March 19, 2002 at 16:10:07:
Good luck Heidi, I’m rootin’ for ya! YOU CAN DO IT!!!