Two months behind

If a homeowners is two months behind on their payments what is possible the best strategy for a new investor?

  1. Purchase from the owner with your own cash or financing.

  2. Purchase subject to the existing financing, pay the arrearages.

  3. Purchase on lease option. Make your option fee high enough to pay the arrearages.

  4. Wait for the foreclosure then buy at a discount as an REO.

Your acquisition strategy may depend upon your exit strategy. What are your plans for the property?

What if the property has tenants, should I do a lease option. The house is behind only 3,000. He will walk if it goes back to the bank. One tenant is paying $1100,the other tenant is paying 500. :help

Owner has $1500 monthly mortgage payment and only $1600 in rental income? If you buy, you inherit these tenants and their leases. How do you propose to make money on this property if you buy?

I don’t see a deal here. Pass on this one.

if it becomes REO - there is no guarantee that it will be a “deal”.

i don’t care who comes on here or who you see on tv - MOST banks don’t just give their properties away -

best time to buy a distressed property is while the current owner still has possession (pre foreclosure).

the more EQUITY in the property the better.

just because someone’s late on payments doesn’t automatically mean it’s a good deal either.

you’ll know when it’s a good deal - all this stuff you read on here and in books is good - but trust me - when there’s an opportunity - you’ll know it. for me, i get this feeling in my gonads that says “holy $%^! this is a deal!”


for real though. i’m a licensed realtor in new york - i am coming across at least 2 deals a month - where I KNOW, there’s opportunity in something - very good too. no bs. funny thing is, it’s not my primary focus for my business. through my travels, phone calls and conversations, i just find them (or they find me).

so keep doing what you’re doing, but ask yourself this, “are you ready for a deal?”