Investing in pre-foreclosures

It seems like investors usually use bank financing as a method for acquiring pre-foreclosures, especially to take advantage of the huge discounts on a short sale. As an alternative, has anyone done a wrap around mortgage or subject 2 deal to acquire a preforeclosure, particularly where there’s a nice equity spread?

I would like alternatives for acquiring these properties when bank financing may not be available.

Atlanta, GA

Howdy Fab:

I have done a few sub2 deals. If you have the cash to cure and the rehab money and the ability to hold the property until it can be resold then sub2 and wraps would be the cheapest way to go. Getting a new loan is expensive especially a hard money loan.