Updated over 7 years ago on .
Foreclosure purchase process
Hello everyone, I recently started investing in real estate using the BRRRR strategy. During my analysis, it is tough to find units I can purchase, rehab, and have room for a margin. A lot of the deals I have found that provide that potential margin after rehab are foreclosures. I have found three places to find local foreclosures, but I don't have all the knowledge to participate. I was initially told I needed cash on the spot, and then I was told I needed proof of funds within 48 hours? My commercial lender stated it was possible to set up a line of credit, and then convert it to a term loan. This seems like a great solution until I build my cash reserves to a higher level. Is there any downside to this? I was told typically lines of credits include second liens on your personal assets, and I don't want that unless they are removed right away once converted to term loan. I don't want to make any costly mistakes that could put me in a bad spot. I live in Indiana if that matters. Any information, guidance, suggestions, and/or warnings would be greatly appreciated. Thanks in advance.