REO/Preforeclosure investment questions for a novice

[Phil M.]

I would really like to start out investing in foreclosures or pre-forclosures, and would like some advice. I think this is a really good topic.

Have you found more success on finding REO for a great price or pre-foreclosures for a straight sale?

How often do your tenants actually work out in a lease/purchase?

Have you ever experienced an un-expected negative cash flow? If so how did you prevent that in the future?

When buying either REO or Pre-Foreclosure do you typically put money down? Are you able to work off the appraised value to get a lower LTV when purchasing either type of property?

I have recently found an reo in my area that seems to be a good deal, I just don't have any money and I have average credit. Is there anything I can do?