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Wholesaler and Trustee Sale Purchases

Foreclosure Investing_ Wholesaler and Trustee Sale Purchases

Working with a wholesaler or buying at trustee sale have some similar to do lists. So, when you are choosing to buy at a trustee sale or from a wholesaler be sure to remember these often forgotten “to do” list items.

Due Diligence: How is the wholesaler marketing the property? Do they share the ARV they anticipate a property will make once fixed or say that there are renovation plans included in the purchase? Take time to budget out what would be needed to bring that home to the ARV that the wholesaler believes it to be once fixed or see how much you are actually willing to put into it and then determine if the numbers have a net positive for you.

If you are buying at trustee sale the ARV will not be advertised, and you may have to ask the beneficiary what will be included in the trustee sale rather than depending on someone else to tell you. You’ll also want to keep in mind what your maximum bid can be to still make your flip profitable, this includes having budgets set for different bid values that reflect how much you can put into the flip.

Sticker Price Movement: Depending on how popular a property might be the asking price can fluctuate up and down. On a property with high demand, you can hear from the wholesaler that someone else is offering a better price. You’ll also want to consider what other costs may be included when buying from a wholesaler

As for trustee sales, the value can only go up and starts at the amount due to the beneficiary (such as missed interest payments from the borrower, late fees, and the principal balance of the loan). Because of this, your due diligence is incredibly important in determining how high you are willing and able to go.

Have a property ready to purchase or refinance? Let us help you with the financing and give us a call today.

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