Posted by Eric P. Martin on June 11, 2001 at 16:28:02:
Maybe I can answer my own question… Please just validate with a yes or no…
The amount of equity that you can aquire?
Wholesaling Foreclosures and HUD - Posted by Eric P. Martin
Posted by Eric P. Martin on June 11, 2001 at 13:15:23:
This maybe a simple question but why if you are considering wholesaling and dealing with realtors should you focus on foreclosures and HUD properties vs. other listings?
That’s where the fixers are - Posted by Ron (MD)
Posted by Ron (MD) on June 11, 2001 at 16:49:56:
Eric,
Wholesalers flip fixer-uppers to rehabbers. Bank REOs (foreclosures) and HUD properties are often in poor condition, which makes them good prospects for wholesalers and rehabbers.
Your second post speculated that they might have more equity. That’s not really true. Banks and HUD try to sell at fair market value, based on the condition at the time. If you pay $x, it’s likely that that’s pretty close to fmv. On the other hand, these houses often have more “potential equity”, meaning that if you put repairs into them, the ARV (after repaired value) can significantly exceed what you have invested (i.e., purchase price plus repair cost).
Ron Guy