Pre-Foreclosure

[Nick Zinner]

Hey everyone so I am a newbie to real estate investments, but very interested. I have done my time doing research and some seminars. There are still a few questions left that need answer. Below I'm going to display what I believe happens during the process. Hopefully there are some Pros out there who can fill in the gaps or fix the process. My position in this scenario would be a birddog.

Scenario:

I locate a preforeclosure. Owner owes 25k on the house. I negotiate with the owner and they will get out of the house for 50k. The ARV of the house is 150k. I put the house under contract and contact my cash buyer/investor. Investor pays the 50k for the house plus my fee and the title and house is now in the investors hands. Besides for calculating all the costs such as holding, closing, etc what am I missing? In this scenario I walk away with my birddog fee and the investor walks away with almost 100k of equity on the home

Feedback is very much appreciated! I'm open to everything. Please have some respect though, I have seen some threads where just because the person is a newbie people jump down their throat. Everyone's gotta start somewhere!

Thanks kindly! 

-Nick