Some advice on this please!!!

I have been looking into pre-foreclosures for some time but have not ran across anything that looked too profitable. However I recently ran across a deal that I might be interested in working and keeping for myself. I would like to just give you guys the numbers and see what you think.

32.91 acres
Market Value $122,228
Principle still owed $52,730.82
Total amount in arrears $8,903.12
Total back taxes $1,478.96

Other than that I do not know anything else such as whether there is power, or water ran out there. Also I have not yet done a title search to see if there is any other outstanding balances attached to this property. My business partner is going to check the land out tomorrow and see what it looks like and get back with me.

It has always been a dream of mine to pick up some land and open a high end resort offering cabin rentals and horseback/backpack trips. There is nothing of this sort in the area at all which is really surprising. This land is located in the prefect area since it is right next to a National Forest with plently of trails and outdoor recreation opportunities.

What do you guys think my next step should be? Do you think I could maybe work a short sale directly with the bank? I am planning on contacting the owner as well by mail and see if he is interested in working something out before it goes to auction because I know the price is going to be driven fairly high.

Also how hard do you think it would be to find possible investors for a project like this? I want to build a lodge and start off with about 8 cabins for rent each having different themes. Of course everything done would be of the highest quality as that is the atmosphere I am trying to achieve. I have excellent credit and about $14,000 cash on hand plus my partner is my dad and he has over $50,000 cash on hand and even better credit. However I want to do this right so I know that I am going to most likely need outside investors.

Any suggestions would be greatly appreciated because I would like to get working on this as soon as possible since the auction is scheduled for the 29th of July at 10 a.m. That is why I want to get your oppinion on this and its potential. Thanks a lot in advance for the advice.

I’m not sure that you can short sale this property because they owe less than half of the value. If you want this you better move quick I would try contacting the owner and looking at the place and just make an offer to the owner. They may not even want to make anything they may just need to get rid of it to get rid of the debt. Just remember you might want to start low because once you go up you can’t come down. I can’t answer any of your other questions.


Thanks for the advice. I guess I ment more of the possibility of doing a loan assumption than a short sale. I am going to send out a letter first thing monday. Thanks

Anymore advice?

Not really just try and make it a win/win for you and the seller and you will win.