Beginning our real estate investing journey and looking at pre-foreclosed homes in our area to begin BRRRRing.
Currently, searching through Zillow listings to find potential properties, and a have a few questions for anyone with experience in this market.
What kind of information can I expect to receive from the Foreclosure trustee? -- can they tell me the loan balance and liens on the property? Or is there a better way (other than the home owner) to find this information out?
Is there potential for seller financing in these scenarios or is it all cash? Is it possible to pay off their initial debt and then set up a sub2 or owner financed option?
Alternatively, is it possible to get a conventional mortgage for pre-forclosued properties?
We have about $50k available -- so ideally would be able to put a chunk of cash down, and save the remaining cash for rehab. We're looking at single family homes and townhomes in the $100k-150k range with ARV $175-225k.
Zillow pre-foreclosures are going to be quite an unreliable source of information, until foreclosed on you will still be dealing with the homeowner. If possible your best option will probably be traditional financing as it is generally the cheapest and the least complicated.