learning and applying

hey marc, do you have any money for downpayment even if its a little? Cus if so you could possibly ask the owner if he or she would be willing to seller-finance the home to you. You can even ask if they would be willing to seller finance it w/o a down payment. That way you'd own it, then from there all you have to do is think of your exit strategy. Meaning what do you plan to do with it. You could from there rent to own to another party with option to buy at a later date at a higher ARV, that way you can have a monthly cash flow (depending on expenses and rent comps in that area) and you can make a chunk of change and when the renters exercise their option to buy, you'd make the difference between what you sold it to the renters for and what you purchased it for originally. Other ways is to secure a hard money loan. That way you own it. Of course if you can't afford the holding costs and such your best bet is to just assign the contract or simultaneous close it for a quick cash settlement and look for other deals. remember not to get emotionally attached to any property!

hope that helps! Good Investing!

Thanks...that makes sense...I am trying to think of the best way to go about this...I really don't have any money for a down payment, although if I really needed one, I may be able to come up with one by talking to people I know...Not to sure...I am trying to figure out a way that would benefit them, as well as me...Of course, they are in preforclosure, chances are, they are atleast a few payments behind...dunno how many exactly though...I would have to find that out...I am trying to think of a game plan before I approach this that way I am better prepared...

I still don't completely understand a hard money lender...So I will search the forums more bout that, and start another thread if I don't understand exactly...

If they are willing to seller finance(down payment or not)does that basically mean I am paying them a monthly payment of whatever we agree???And then they are paying their loan amount to the bank???And if I do do the seller financing, does that mean they keep the house in there name, and I don't own it???And if that is the case, am I still able to rent it out to another person so they cover the monthly payment instead of me???thinking bout it that way sounds kinda weird, but figured it can't hurt to ask...

If they are in pre-forclosure you would not be able get the home without any money down because they are behind and would have to bring the mortgage current.
Find out what they owe on the mortgage ,how much they are behind and what the current FMV is for the house. then you can determine if this is worth persuing.
hope this helps.

if things do work out, and I can come up with a down payment...should I see if they will except a little more than what they do currently owe as far as payments...so if there mortgage is 1000 per month...and they owe 5 months plus this months...should I try to see if they would except 6000 or 6500 as down payment???Or as much as I possibly can??? and then as far as the rest of the cost of the house, should I see if they would be willing to do seller financing???and would that work kinda like renting it from them, but I would own it...or would i eventually own it???or how does that work exactly?

Since we dont know what they owe and how much it is worth it is hard to give advice on it.
If you can come up with 5-6k then I would have them ask the lender for a quick sale. Then you can get an FHA loan and the house for less then they owe. I think you can have them sign something to allow you to negotiate on their behalf with the bank on the price. There is a post on this somewhere. I think sistreat wrote it. First find out what they owe and what FMV is on the house.

Alright...Ima attempt to get in contact with the owner of the home...tell them im interested in purchasing...ask them some questions that will let me know important things, and let you guys know...

I wrote a letter to the family/person of the preforeclosed home that I have been interested it...I figured i would write it up in case nobody was home when I stopped in and I could leave it there...so anyways, stopped in at the home to talk to somebody, but nobody was home, so left the letter, which had my information including number...so hoping for a phone call at some point...It will be so awesome to get a phone call, and hopefully be able to work something out...That would fire me up even more so than I have been...So that is the update as of tonight, and hopefully I will be able to come on here within the next few days and say I got the phone call, and next step is to meet with them and go over some options...Thanks for all the input by the way...Means a lot

only been a little more than a day, but update is no phone call...Of course its not like I have given much time or whatever, but updates are always good...And then again, they may not contact me...plus I am going to be joining the success academy if I qualify...So I am looking forward to that so much...already talked to a coach, and is calling back round 2pm on Friday...which actually technically it is already friday...So things regardless of the house, are going in the right direction...