Milwaukee, WI · Member since 2014 · 13 posts · 0 votes
I just hooked up with and investor and he told me to focus on pre foreclosers but how do i get them with money dowm. he told me to just get them and he will close the deal for me. help i dont want to make the mistake and do all the work and lose out on a good deal
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
12y
There are many ways to work pre-foreclosures with no money down - and protecting your interests at the same time. You could buy the house subject-to the existing mortgage, getting the deed, and then sell it to your other investor (I'll just call him Joe). Or, you could get the house under contract and assign your contract to Joe for an assignment fee. Or, you could get an option contract on the house and then assign your option to Joe for a fee. Or, you could buy it with a land-contract and then sell it to Joe (or assign your land-contract).
I'll give you one better than that. I once bought a house (it was an estate sale, not a pre-foreclosure) and I received a fairly nice check written out to me at closing. The check came from my bank. They actually financed it for more than I paid for it so that I could have money for repairs. But that was back before the Lehman Brothers shtf.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
What is it you're trying to do?
Before the foreclosure auction the house is still owned by the owner (not the bank or trustee.) So, you can work out whatever deal with them they will agree to. Many houses in this situation require a short sale, though. That involves approval from the lender(s) and that's a long, complex process.
Miami, FL · Member since 2011 · 200 posts · 42 votes
12y
I think that with a short sale you would need to put money down in order to get the house under contract. But once it is under contract, I believe that you would need to sign a partnership agreement with him to protect your interest in the property.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
12y
Hey @Reginald Hart welcome to BP! You can always learn a lot from mistakes too. :) If you haven't checked out the The BiggerPockets Podcast yet, I highly recommend it!
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
12y
There are many ways to work pre-foreclosures with no money down - and protecting your interests at the same time. You could buy the house subject-to the existing mortgage, getting the deed, and then sell it to your other investor (I'll just call him Joe). Or, you could get the house under contract and assign your contract to Joe for an assignment fee. Or, you could get an option contract on the house and then assign your option to Joe for a fee. Or, you could buy it with a land-contract and then sell it to Joe (or assign your land-contract).
I'll give you one better than that. I once bought a house (it was an estate sale, not a pre-foreclosure) and I received a fairly nice check written out to me at closing. The check came from my bank. They actually financed it for more than I paid for it so that I could have money for repairs. But that was back before the Lehman Brothers shtf.