Pre foreclosure flip

5 Replies

Hey I met a guy who lives in Norwalk Connecticut and has a 3 bed 2bath ranch style house, who is about to go into foreclosure. He said he owns 315k on the property and it needs full update throughout the house and siding, the comps is in the 400k-440k... what should I do to try and get this property?
@Perry Mcintyre One option is try and short sale. Your other option is to try and wait till it goes to auction and possibly get it cheaper. You want to get it with the largest margin possible in case there's any problems in the updating of the house.

Hi @Perry Mcintyre In addition to that you have to hire a contractor for siding and interior to full update, so you’re looking for almost 100K in repairs.  On this scenario, you will be paying almost the market value of the house. I’d also suggest a short sale.

@Perry Mcintyre Have Find out how far behind he is and see if it is an amount you can pay current if so, make arrangements for him to deed the property over to you in exchange foe helping him evade the foreclosure and cut him in on some of the profit after you fix and sell the property.

I don't see much of a deal here unless you can do a short sale- ie. get the bank to accept less than is owed. I would pass.