Ie. does the seller need to be in, or close to, pre-foreclosure, or in a tough spot?

@Nat Rojas pretty decent project timeline.Every owner wants their PMC to turn a property around faster, so they get a new tenant ASAP.The challenge is reality.We've do our best to do pre-MoveOut Evaluations, so we know what needs to be done. 

I have some real life experience with this, my grandfather is 88 years old, his wife my grandmother is in failing health (chronic illness is expensive), he has 5 properties right now 4/5 were bought pre 1980 so obviously have appreciated a ton the 5th has probably gone up 5x since he bought in and that’s the one that’s done “worst” now this sounds like an great portfolio everyone dreams of right?

Here are some quick numbers for context.Purchase totalAfter RenosYearly RentsCap Rate (pre costs)Cap Rate (- $300 IRS, PM, INS)$62,240.00 $64,890.00 $11,760.00 18.12%12.58%$71,280.00 $71,530.00 $9,516.00 13.30%8.27%$37,116.00 $39,116.00 $10,500.00 26.84%17.64%$58,857.00 $59,857.00 $12,000.00 20.05%14.03%$49,501.00 $56,046.00 $10,740.00 19.16%12.74%All in, we're interested in any creative financing - traditional refi, portfolio loans, DSCR, HELOC.

It makes you more competitive if there are multiple buyers competing for a house, many sellers are reluctant to go under contract unless they can mitigate the risk of not closing due to financing problems - they do this by only signing with folks who are either pre-approved or pre-qualified.Another reason for getting funding lined up first is that you will be way less stressed between going under contract and closing.

Yes it is a viable option but it is very different than 2008 and also very different pre covid.

Jason, how do find the pre-foreclosure properties? 

Back in the day when we did all the BRRRR upfront loans.. my borrowers would get a pre approval of course so I knew they had an exit form my high cost loan. 

In California I have always done this as part of my pre-purchase due diligence.

I know this isn’t a popular answer, but rocket lawyer has some decent pre made templates.