All Forum Posts by: Sajun Folsom

@Jaron Walling

Thank you, I believe you’re right.

This is the sale of a participation interest in the First Mortgage secured by this classical late 19th century architecturally beautiful property making it a potential rental or fix and flip opportunity. The Estimated Total Debt is $88,000 and the Estimated Property Value is $135,000. The note is offered for $72,900, of which we seek an investor to put up $18,225 and the seller will carry $54,675. The investor can utilize the preREO Program to have a local court appoint a receiver to repair and rent the home during the foreclosure process. Once foreclosed, the investor can keep as a rental, or sell as an REO. The investor is entitled to all the upside above repaying the seller their $54,675 plus a 12% annual return.

I understand that it’s being foreclosed on that someone is buying the note for $72,900 and needs $18,225 from an investor. What I don’t understand is the last part. The investor gets 12% on their investment but then it seems that the investor owns the property except has to repay the seller $54,675? Is this some kind of wholesale deal?

Thanks to everyone who responded! What a great and helpful community. Having all of this combined knowledge is such an amazing asset. 

@Jason Regan thank you!

@Moises R Cosme great! Thank you!

@Joe Villeneuve the lender is for closing

I recently found a property in my town that is in pre foreclosure. The original loan was for $40,000 and and the property should be worth around $200,000 now. According to the county Assessor’s website the title looks clear and they owe $700 in property taxes. What would be the best thing for me to do to try and buy this house and what should my expectations be? Should I reach out directly to the home owner and offer to buy it? Should I look into a short sale when it will appraise so much higher than the original loan amount? What other do diligence might I be missing? Any advice would help, this could be my first deal! Thanks!