Equity Deals

[Luis Cruz]

Ok, so i'm looking into pre foreclosure deals

Now, i'm a newbie so I really don't know much about what goes in between what i'm about to lay out

please correct me and give me more details on what i'm trying to do also please add anything that i'm missing.

So I found a house in pre-foreclosure that's worth $368,000

The owner bought it at $359,000 and he owes $139,520

So what I have understood is that I can make an offer to the owner to buy their house at the amount of lets say $239,000 if I were to buy at 65 cents on the dollar of value ($368,000)

So i make this agreement with the home owner and put it under contract? what kind of contract?

After I have put the deal under agreement i look for a buyer that will take care of paying for the $239,000

The previous owner keeps $139,520 to pay off his debt and I keep $99,480?

Does the previous owner keep any profit from the $99,480?

I'm trying to learn as much as i can, I know there are a lot of errors with the way I structured my plan out and please fix anything. Also what contracts would I have to use in this sort of situation?