Newbie stumbled into a Preforeclosure

[Bryce Christensen]

I'm trying to learn about buy and hold for myself, but I just stumbled into a situation with an acquaintance in West Houston / Katy that is in preforeclosure. I haven't done enough homework to know how to help them at the moment. Can anyone help me with what information I need to gather to make a formal posting to solicit an investor that would be interested? I expect I need to figure out exactly how far they are behind, how much equity they have, and when the bank sale date. What other information should I gather?

[Dennis Rodriguez]

@Bryce Christensen I would ask all those questions and also take a close look at the condition of the house. Once you got all that info, run a CMA to know what the house might sell for in optimum conditions. With theARV and repair costs, you will have an idea of how much you can offer for the property and see if that will cover the outstanding balance and back taxes. Only then, you will know if this is a deal or not.

If everything checks and it is a good deal, I would partner up with an experienced investor if it is your first flip or maybe wholesale it if there's enough profit to be made.

Dennis