first deal ?

Okay so I went out last week 3-4 times putting up fliers on pre-foreclosure homes and I got a call today.

The realtor who has the property listed called and gave me all the info.

Its a 5 bed 2.5 bath it is listed and valued at $350,000.
first loan is $265,000.
Second loan is $30,000.
$295,000. total loans

They are in bankruptcy protection but can come out to sell. They cannot afford it anymore due to lots of life problems and want it gone. They also do not want to get 1099 because they can not afford it.

It is in perfect condition in a nice community.( I know its better if in bad condition)

Any ideas?


What is it that you want to do with the property? What’s your exit strategy?

LoriK is right. First you have to figure what you want to do with the house. Do you want to buy and hold ie. rent or lease option it? Do you want to flip it? How far behind are the sellers? How much is the PITI. What kind of rents will the house bring? Is the house really worth $350,000?

If the house is worth $350K and the rental will support the property and the owner is not too far behind you may want to purchase it subject to the underlying mortgages. If they are behind you may want to discuss a short sale with the second mortgage. In any case with the seller being in bankruptcy be careful about entering into a contract before the BK is discharged or without the permission of the BK trustee.

No matter what you need to do your homework first on how you will dispose of the home and analyze your costs to determine your profit.

Remember you make money when you buy a home not when you sell it.

***get the true value, look back to before the housing boom around 1999 or 2000 forget what the mortgages are, think discount never be a motivated buyer that is how you get fryed!!!.. and always remember that the seller has to Seller you Never have to buy, so you are in the driver seat…
I am always reluctant to take anybodies word on what anything is worth, get an apraisel done and not by a realitor for god sake…
Think like Ron Legrande NEVER EVER PAY more then 70% of the apraisel … ever!!!
He calls it MAO = max. allowable offer…