I have a book and done some research on Pre-Forclosures. Is there anything preventing me from doing conventional financing from a bank to purchase this? (i.e. put 20-25% downpayment on a new mortgage).
What are the downsides? I am assuming time and higher cash requirements? Perhaps competition can react to a deal quicker if they can buy cash, avoid red tape with hard money loans, or try something like "subject to" deals or wrap around mortgages, but my concern is that I am not quite ready for those options. The latter seem overly complex for someone trying to purchase his first property. Ultimately my strategy is buy and hold for long term, but I would like to find the best deal possible in order to improve cash flow. The deals I am seeing on MLS are closer to turn-key and won't cash flow well. I am not afraid to hustle. I'm in sales now and sell enterprise software for my day job so I don't think finding the deal will be my problem.
Thanks in advance for any input you can provide.
Due to the timeline of the foreclosure process and the very likely chance that the property needs a lot of repairs conventional financing will not work. You need cash or private funds.
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