HEAD START ON PRE-FORCLOSURES !!!!!!! - Posted by Jeanine

Real Estate Investing Real Estate Gurus
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Posted by Jon R on November 17, 2001 at 24:21:28:

See if the sellers let you take the property subject to and sell it a l/o. That way you will get full market value for it, monthly income and a down payment. You can use some of that down payment money to give to sellers. My only question now is what are they looking to get out of the deal. There are a few scenarios I would try but they depend on what the sellers wants are and if they create a win win situation.

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HEAD START ON PRE-FORCLOSURES !!! - Posted by Jeanine

Posted by Jeanine on November 15, 2001 at 22:46:37:

What steps can I take to find out owners that are about to face forclosure and how can I locate them to get a jump start on other investors? Also does anyone use the Carleton Sheets contracts on all offers? I’m really nervous about putting in an offer. I want to make sure everything looks correct and not like I’m just a newbie. I have Carleton Sheets program and I’ve purchased Flipping Properties (book)
and Buy It, Fix It,Sell It. Been on the post for some time now. I have been reading all I can to know all I need to know regarding flipping and wholesaling. I know I am armed with the correct tools, just really nervous. I’m meeting with a seller today on a house. They just want out because the payments are to high. They have been there about seven years. Bought at 95,000, comps look like about 110,000 or so. 5 bed 2 bath. I know this is more that one question. This may be my first deal. Can someone help. All comments welcome.

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Re: HEAD START ON PRE-FORCLOSURES !!! - Posted by Jeanine

Posted by Jeanine on November 16, 2001 at 12:05:15:

Maybe I did not say everthing clearly. The house is current on payment and not in forclosure. They bought it at 100,000 and put 4,000 down and owe 89,900. Could sell for 115,000. It is four bedrooms and a nice basement family room. Is it worth dealing with? I was thinking of fixing and finding another buyer. Would probably get hard money to fix. Nothing major though. Payment are 911.00. I told them to think about it and get back to me. They have another house they will move to that has a tenant in it. So they will have to give them a 30-Day notice or someting. Wich I can’t get in to start work until then. They may want to sell the other also. Just depends. What is quick way to solve this problem. Am I going about it the right way. The pre-forclosure part was in reference to how can I find out owners that are about to be forclosed on?

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Re: HEAD START ON PRE-FORCLOSURES !!! - Posted by Brad_GA

Posted by Brad_GA on November 16, 2001 at 01:47:12:

  1. Be Confident
  2. Be Calm
  3. Try to act professional, even if you are none of the sort
  4. Pre-Foreclosures are never no money down. You must make up back payments.
  5. I would offer to buy this property for the outstanding mortgage balance plus any amount needed to bring the loan current. You are buying it subject to the existing loan. State those words (or however you would like to word it) in the contract under the purchase price or method of payment.
  6. Make sure you know what the mortgage payment, and the taxes and insurance are monthly. Dont want to buy an alligator. If it is in need of repair, be sure you have the funds to repair the property for resell or renting, whichever you may choose to do. I prefer renting, but thats personal choice.
  7. Find a good attorney that understands land trusts. Use Bill Bronchicks land trust addendum to contract found at his web site www.legalwiz.com
  8. If they are motivated and want it, they’ll take the contract, If they dont, they wont. Dont deal with nonmotivated sellers. Its to easy not too! Lots of foreclosures are out there with lots of equity, just move on to the next.

What do you think Bill? Do you agree?

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Re: HEAD START ON PRE-FORCLOSURES !!! - Posted by Jack

Posted by Jack on November 16, 2001 at 14:22:23:

Mighty skinny deal to be getting a hard money loan and doing repairs. That plus holdng costs could have you working for free.

What did you tell the sellers to think about? That wasn’t clear.

Jack

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Re: HEAD START ON PRE-FORCLOSURES !!! - Posted by Jeanine

Posted by Jeanine on November 16, 2001 at 17:30:30:

I told them to think about selling to me. They are willing to do everything they can to get it ready for sale. I may just get the hard money loan as a down payment until I resell or assign the contract. I should only have to spend on cosmetics. I estimate about 2 or 3 thousand.