Found pre foreclosure property I want to invest in!

[Matthew Diana]

I'm a new investor, I have done my due diligence and research for over a year now on real estate investing. It's time to gain some experience, and I've been looking at properties everyday and night for over 6 months. My niche is small multi-family homes (1-4 units) and I'm interested in using the BRRRR method. Now what led me to making this post is that I need help with an idea I have for a pre foreclosed condo I found. The condo is completely bare so it's a blank canvas for me to do whatever I want as far as rehabbing it and it's in a great location. I've gotten estimates from contractors and was quoted around 50k. After running numbers by using the BP tools, I could potentially raise the capital I need to invest into a bigger (quadplex) multi-family with this property if...executed correctly. I've also been able to find the owners contact information but haven't reached out yet because I was hoping to get some guidance on how to do this whole process correctly and capitalize on it as much as possible. The auction date is over a month out so I have sometime to figure out what to do. Any help/suggestions would be appreciated, thank you!

[Marty Boardman]

It's great you've done so much research already Matthew. Congrats!

I've been flipping pre-foreclosures and trustee's sales in Arizona for 20 + years. Your TOP priority is to make contact with the owner and get the property under contract ASAP. Otherwise another investor (like me) could swoop in and snatch it up right from underneath you. You can always ask for a 5-10 day inspection period to get financing/rehab estimates sorted out.

With a pre-foreclosure you want to make sure title is clean and that the foreclosing lender is in first lien position. Also, if there are state/federal tax liens it could be an issue selling or refinancing.

What is it specifically you need time figuring out what to do with this property?