Found a Property, Now What?

[James Krueger]

Hello BiggerPockets Friends.

I've found a property that is in pre-foreclosure that looks like the numbers are going to work out to fix and flip it, at least at initial glance.

What should I do next? I am totally new to this and would like to minimize the chance of blowing my first deal.

[Mark Elliott]

hi james. well, first we need to know a few more details. if it is in pre foreclosure, thats better than foreclosure. in pre foreclosure, you can still buy it from the owner and not the bank. when dealing with a bank, the whole program is totally different. so, what kind of a deal have you worked out with the owner? are you going to catch up his past due mortgage payments and take over his mortgage, if it is allowed, or are you going to sign a land contract with him for the balance? bear in mind, some mortgage contracts has a " due on sale " clause, so if you plan to catch up his back payments and then sign a land contract, the bank may exercize their right to call in the mortgage. you need to check this out. if you are paying off his mortgage and taking ownership of the house, great, its pretty simple. just get a lawyer to draft up the papers and cut his bank a check and its pretty straight forward. give us all a few more details here and we can help you out