Help Navigating a Probate Deal!

[Matt Owen]

I found a property listed on the MLS. its a 14-unit property with mostly 1bd/1ba and a few 2/1 and a studio. It was listed at 500k and just dropped to 400k yesterday (after 3mo on market) leading me to contact the realtor.

The owner was the owner/manager so there are no past financials. there was an old rent roll so I have that to go off of and numbers are looking like I definitely want to look further into it. 

Says the place needs a roof and some other work. The realtor mentioned it may not be able to be financed with a traditional lender so I'm concerned about how much damage it may have but I'll be taking a look at it tomorrow to try and get an idea. 

So the first trust deed holder put the building into foreclosure with a sale date in March. it also has a second lien holder that the realtor says will accept a short sale. he says the total of the two liens is over $500k.

How do I work this so that it makes sense? I budgeted 60K for repairs and the numbers still work well so if I can get it around the $400k mark I think it would be great. however I don't know how to negotiate anything between the estate (probably under water on this one???) and the two lien holders. is there an opportunity to assume the loans or to do some other creative financing with restructuring the loan with the existing lenders?

any information I need to know to ask for? he mentioned the court has to approve the sale and up until its approved someone else can come in and purchase the property. I'm not sure what goes into the courts decision. Is it just an agreement between the estate and the lien holders on price? I don't see what else they would do other than mediate differences on price. 

Any tips on how to pursue this one is greatly appreciated!

Thanks all,

Matt