Chosen by Asker

If you are not sure as to what to do you will bugle a good investment deal. You should first of all understand and know the laws of purchasing a foreclosure in your state, whether it is a bank or tax foreclosure. If you plan to purchase the property you would have to make a purchase contract with the sale price in the contract. You would also have to get this sales contract signed by the seller. In most states this sale contract is required to be 10 point print or higher. In some states if you are purchasing a pre-foreclosure you have to give the sellers a minimum of 5 days in which you can not contact or talk to the seller for any reason what so ever. There are also disclosures that you must provide the seller as to the equity they losing in the process of this sale. You know the seller does not have any funds therefore the minimum you will have to come out of pocket with in order for this transaction to work is the $10,000 tax lien as well as the amount you plan to give to the seller for his/her equity. You would not allow the escrow to close until the current owner has vacated the property and handed you the keys. Handing you the keys is symbolic as you should immediately change the locks or have someone change all the outside locks. You might simply lend the money to the home owners, charge interest on the money you lend them, collect a monthly mortgage note from them. Failure on their part to pay you would give you reason to foreclose on the property. You should draw up a contract with the borrower, giving all the specifics such as the amount borrowed, interest rate, the number of years in which they would be allowed to pay you back, normally private real estate investors allow 3-5 years for repayment. You would add any and all closing cost to the loan amount. Your loan amount could be higher as you could charge a few points and fees for the loan you would be making for the potential borrowers. Remember that their might be laws about the number of points you might charge for the loan you make. The escrow closing agent and the title company will make the mortgage note in your favor and record this mortgage note against the property in your favor. Doing this transaction this way the borrower would remain in the house and start paying you a monthly payment each month after a certain period of time. You appear to be a novice real estate investor therefore you lending the money might be the best option at present. You will not lose a good deal, also you would earn a good amount of interest in this situation. If you desire to become a real estate investor you should go to your local book store and purchase as many books as you can on flipping, wholesaling, buying and selling distressed property as well as probates and foreclosures. These books will give you a detailed description of what you should do in most situations. The normal cost per book is approximate $15.00 per book. There might be some used books for less. The more educated you are about real estate investing the better off you will be in the long run in setting up your investments, how to find them, and most of all what do with them once you have found an excellent deal such as the one you have found. Another thing to remember sometimes the deal is not in how much you make but in helping the individuals and still earning on the deal. You will get more by word of mouth than just the fact that you made a good deal for yourself. You would be surprised as to how many deals you make if you place the other person ahead of your personal gain. It took me 3-5 years to learn this, but once I did I have many deals and lots of word of mouth advertisement. I hope this has been of some benefit to you, good luck. "FIGHT ON"

by loanmasterone

2 weeks ago

Asker's Rating: 

Some might call you a bottom feeder. If you are trying to acquire the property for a rock-bottom price, how is that HELPING the owners? If you want to help them, give them money to pay their bills. If they owe $40k on the property, they will have a lien. Be nice and offer them $10k over appraised value.

by Gaytheist Buddha- 2 weeks ago

Please don't give that "I want to help the family" bull poop. You're looking to make a quick buck the easy way. Good for you. Either offer them the 165,000 the house is worth and let them walk away with 115,000 in their pocket or offer them 50,000 and kick their butts out the door. I'd go somewhere in the middle.

by estielmo- 2 weeks ago

What state is the property in ? Is it a Tax Sale, a Mortgage Default foreclosure, or both ? It would be a shame for them to lose $125K for a measly $10K. What do you want to accomplish ? What does the owner want to do ? Martyf36@yahoo.com Roswell GA

by martyf36- 2 weeks ago