How Do You Structurize Pre-Foreclosure Deals ?

[Account Closed]

Hi Guys,

My team and I will start tapping into pre-foreclosures the upcoming month, so I wanted to ask you guys how do you guys put these deals together? What strategies do you use to lock them up ? I know some guys give the home owners money up front. But how is it exactly that you do and is a pretty successful way to do it ? 

[Paul Amegatcher]

There is no one way to do it.  Each deal will have to analyzed based on several factors.

1.  How much equity is in the property?

2. What is my exit strategy?

3. Do I want to take it subject to or pay cash out right (see question 1).  If the underlying mortgage has great terms you could catch up the delinquent amount and take over the property subject to.

4. Is lease option an option?

These are a few questions to ask yourself when you come across these deals. You cannot use a one size fits all strategy here.  Good luck.

Paul