I Need Advice on Possibly Purchasing My First Foreclosed Property...

[Tara Jackson]

There's a two flat building next to my parents house that's in foreclosure- i don't know if it's REO yet. The owner just informed my dad that he was losing the property a couple of days ago.

In my situation (being a newbie) what should I do? wholesale it; find a Hard Money Lender and then fix & flip it; or shortsale (don't know much about this at all) if it's not already bank owned? Or what are some other options?

Thanks!

Tara Polk Jackson
Tarynlin Management Group LLC

[Jon Holdman]

Who's name is on the loan? How bad does this guy want to be rid of the property? Would he consider letting you buy it subject to the existing loan? You take over a $96K loan, put in $60K, and you're into it for $156 vs. a $300K ARV. That's a clear money maker.

Can you come up with the $60K for the rehab?

Looks like a flip to me. A $300K value means you need rents something like $2200 per unit.

The grandfather's name on title isn't a big deal. A death certificate and the will showing the ownership has been transfered to the guy you spoke with should be enough. A title company or real estate attorney could help you with the details.

You need to have a better ARV. That range is way to large.