Which of these come first in pre-foreclosure deals??

Question

Find the rent to own buyer first or market to the pre-foreclosure sellers first? Is it true that in order to protect yourself in case the tenant buyer defaults on payments they must pay a hefty upfront non-refundable deposit if they do not buy the home after their lease is up.

Chris Seveney · Answer

@Antonio Bodley

Well a pre foreclosure borrower is behind on their mortgage so the down payment probably brings the loan current a if you are then trying to do a sub2 wrap with no money in the deal - can it be done yes but chances of doing a deal like this you will probably spend 100’s of hours to maybe get 1 deal.

Sub2 is a very difficult business model and only a few have made a living out of it, and some who made money then sell training programs but if something is so profitable why would you put together training unless it’s more profitable than the actual work

Account Closed · Answer

It doesn't do you any good if you don't have a property to sell. There is no shortage of rent to own (what I call Lease Option) buyers.

I favor finding properties "Off Market" doing “Subject To” and selling on “Lease Option” for great cash flow. Such as:

Buy using Subject To and sell on Lease Option which I explain at https://www.biggerpockets.com/forums/311/topics/1141313-subject-to-why-you-need-money-to-buy-using-subject-to-subto-safely-legally

I've put together a spreadsheet that shows how all of this works. If you'd like a copy just DM me.

Click to https://www.biggerpockets.com/users/mikeh695 & Tap the message icon in the upper right corner of your screen