preforeclosure?? how hard is it to purchase one???

[Chad Jackson]

For my next investment, I was going to try and purchase a preforeclosure. Is this hard to do? I'v heard alot of people will get cash offers, and that if I'm doing the purchase with a loan, to not even try. Just looking for any kind of advice that has to do with these.

     ,Thank you!!!

[Marty Boardman]

Being an investor is a lot like being a fisherman, you should have as many lines in the water as possible. I look for deals in lots of places (from wholesalers, the MLS, text blasting campaigns to absentee owners, landlords) and I target pre-foreclosures and auction deals.

All that matters is margin so don't rule out any buying strategies. All that said, I'm acquiring about 90% of my deals now through pre-foreclosure and at auction so it's a great way to find below-market deals. And as Minna mentioned, the transactional process is no different than a traditional purchase.

However, there is a huge difference in the way you contact and negotiate with a homeowner in foreclosure. Homeowners in foreclosure are experiencing a great deal of stress (job loss, medical bills, divorce) so you must be empathetic and a good listener. They may also be angry, in denial, confused, apathetic or all four! So you've got to be patient as well and understand the process enough to explain their options and provide a win-win solution. You may not even need to get a loan if you are creative with the financing (subject to).

Good luck Chad!