What is the difference between a hud home, reo, foreclosure and why is one better to invest in than another?

Somebody on here who gets the "tax benefits" principle  I think people try to sound or be to sophisticated rather than use common sense.  

The marketing and types of motivated sellers in Hawaii are basically the same as elsewhere - pre-foreclosure, probate, absentee or out of state owners, divorce, etc.

Once you get comfortable with the basics, then you can look into purchasing a property that requires more work.

@William PaceI would definitely check out Josh Dorkin's blog article on the basics of wholesaling.

He also does  basically unlimited follow up calls.

an idea that I had, but havent tried yet is, talking to people in preforeclosure. and offering to rent out their rooms (basically making yourself a property manager.)

Our nets were amazing becasue we had cash flow, appreciation AND principle pay down all for very little work.Personally I love going into a place that I can leverage my money and than have my tenant pay off for very little down.I LOVE leverage but hey were are 1.3 million dollars in debt.

We found a tenant pretty quickly on our own and they stayed for 3 years basically trashing the place.

A basic 2 bedroom with a washer/dryer, cable/wifi, full kitchen goes for $350/week.