Starting out in pre-foreclosure

[Danny Day]

Looking to start out in Pre-foreclosure short selling. I'm going to get a front site up and start posting ads in my area. I had a few questions regarding pre-foreclosure.

I've been reading some books on the subject, and one of the books says you can do all the transactions without a broker (and save some $$$). How do you do a transaction like this without a realtor (buying the property from the owner)?

I know due diligence is crucial in anything dealing with foreclosures. Do you recommend a way to check for liens on the property? Title company?

Also last but not least, could someone explain to me the pre-foreclosure process (on how people profit).

From what I see for example: Mr. X owns a house worth $180,000. He owes the bank $80,000 on the loan. He is behind on his mortgage payments, less than 90 days and will soon go into foreclosure. I offer to buy the house for $80,000 (assuming there is a clean title) and take over his mortgage. I invest some quick cash in the house, and turn around and sell for $195,000.

Thanks in advance

Danny