My first wholesale lead! · Wholesaling Real Estate

My first wholesale lead!

Hi! I got my first wholesale lead from a homeowner in pre-foreclosure using sticky notes. He asked his agent to call me and so was chatting through his situation with her. He got an agent just days before my sticky note (after he received the notice of trustee sale). The bank’s already scheduled an auction date in a few weeks. The home definitely needs extensive rehab.

After doing a deal analysis that I put together (given to me by my mentor), I verbally discussed an offer that we plan to offer her seller. She’s new to pre-foreclosures and didn’t even know an auction date was set. But her seller has unrealistic expectations on price and said the offer I was proposing would mean that he would walk away with nothing, because of closing costs etc (which I gather includes her commissions). She said they’re going to list it in the MLS this week to see what they get and ask for a 45 day extension to the auction date. She said the seller wants to make as much money as possible off of the sale.

Would you submit an offer anyway? Or just move on to the next lead? My mentor seemingly uses conservative numbers for the deal analysis, but either way said this will be challenging when the agent’s never done pre-foreclosures. He thinks the seller’s going to learn soon that it’s not going to sell that quickly and it may be too late by then for any of us to buy it. And properties at the Notice of Trustee Sale stage usually can’t get more than a 30 day extension IF they have a contracted buyer already. My mentor thinks I should move on, but I’m wanting to work the deal til there’s no other way. Would love insight with anyone who’s had a similar situation happen before? If so, what did you do? Thanks!

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