INVESTING IN FORECLOSED PROPERTIES
The goal of the wholesale strategy is to generate cash quickly by finding and vetting properties that can be quickly sold to other investors. Those investors may be looking to build rental portfolios, or even fix and flip. This strategy is sometimes called birddogging, since like a bird dog, you bring the prey (a property worth investing in) to the hunter (investor).
Wholesaling is a quick-flip in which you may never take possession of the title and may not even put any cash or credit into the deal. The buyer you find pays the seller the purchase price and pays you a finder’s fee, assignment fee or option fee, plus reimbursing you for the cash you were out on the deal, if any. For that to work, the timeframe must be short because the seller can’t wait for months to get paid.