New Opportunity for a new investor

7 Replies

I found a river front property in Pre-Forclosure for $197,500. Current mortgage is $1000. I don't know how long or how much equity. This would be a great AB&B or long term rental. I am so green, but I see this as an opportunity to possibly take over the mortgage if there is a decent amount of equity. Not sure if it is at the point I can work with the owner or take over the mortgage with the bank. I may be off track. I am reading as much as I can, but don't know if this might be over my head for the first deal. Maybe a wholesale opportunity? Comps are difficult since single family homes are so diverse mixed with vacation properties on this river. We are also going into the winter, so probably not a lot of vacation rentals for awhile. Please advise.

@Cliff Ridge I would be cautious about anything you find on Zillow. It has a mix of accurate vs inaccurate data. The best thing to do would be reach out to a local agent or skip trace the owner's # and reach out. Is the house listed as a FSBO currently? If not I would reach directly out to the owner and just discuss options.

The worst they can do is say no and hang up. I would encourage you to pick up the phone and give them a shout. Lay out your plan and how it could align with their goal. Explain that a foreclosure stays on your credit for many years and that it will prevent them from possibly getting another mortgage a few years down the line.

Position yourself as their way out...because you are. 

Thanks for the info. By the way, I hear a lot about using hard lenders for flips. Can you use a hard lender for a rental investment? I'm just having a bit of an issue figuring out how the pay back works if the property is held on to.

@Marlen Weber Thank you! I appreciate that. @Cliff Ridge maybe... ha I know that isn’t the greatest answer but it all depends on terms. Hard lending can be done a ton of different ways depending on who is doing the lending, the length of the loan, and payback options. 

I would highly encourage a look into the BiggerPockets education tab and podcasts to get a great understanding before you dive in. I would hate for you to dive in head first and end up loosing a bunch of money.

What is your end goal? Are you wanting to wholesale? Flip? BRRRR?

Right now my end game on any property I am looking for is either wholesale or hold and rent.  I don't really have the time at this point to spend flipping.  I wish I did, because I have the skills to do a lot of the work other than elecrical/major plumbing.  Since I am very low on funds this is why I am looking at wholesale, but the long game is renting. I'm not sure if this is a good strategy.  I just wasn't sure if hard lenders work with rent properties like they do for flips.  I know a perfect scenario would be owner finance, but I don't know how often that happens.  Again, I am green right now just trying to learn and absorb before I leap and hopefully not fall.  I'm tired of kicking the tires.