I purchased a wholesaling program about a month ago, but I still having trouble understanding the process.
I negotiate a price with the home owner in foreclosure and then the next step is to turn around and sell it to a rehabber for 60 or 65% of market value.
I understand it so far, here is an example. I find a property for $100,00. the owner owes the bank $50,000. The property need some work $15,000 I get my fee $10,000 the owner gets $10,000. back payments $15,000. =$50,000.
When I go to the title Company how do I write up the contract because my understanding I get my check and the owner gets his check at closing, but what happens to the repair cost. The rehabber already gets a property valued below market, does he also get additional $15,000? It looks like the rehabber will be buying the property for $50,000?
Thanks for the help
2007-01-16
17:01:30
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3 answers
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asked by
Excellent Credit Service
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in
Renting & Real Estate