I would try to get a friendly conversation going, soft sell, regarding what are they planning on doing - steering them towards their smartest solution.I don't know how to figure an offer for Pre-foreclosure.

. $140 After repair value -28 Minus 20% soft costs$112 - 20 repairs $92 break even point $ 85 your price $7k your profitThat is a pretty slim deal.

So if I have 150K in soft costs I'm paying, and 1.5m in hard costs for construction, will the bank consider the the building I own (free & clear) and developing as a percentage down or not. 

Most consumers (individuals and companies) have enjoyed a soft insurance market for well over a decade now. 

Sales are soft, prices are down, sellers are flexible.

The account isn't large enough to finance a flip itself, but the funds can be used to obtain a soft-money loan, and I will have 20% in both the purchase price and 20% of the rehab costs.

A lot of what I'm buying is starting out around $120-150K, dropping over 6-10 months down to about $50-70K, and then I put in an offer at about 60% of current list and negotiate to about 70-80% of current list.So, I'm mostly picking up properties for $35-55K that are listed for $50-70K.Again, I'm around Atlanta, which has seen more foreclosures than most of the country, so I don't expect most other areas to be as soft in terms of picking up REOs...

We had no clue we could keep it soft the whole way, so yes I'd like to hear how this could be done.

You have a relatively soft real estate market across many parts of the country, subprime lending sucking wind, a recent 1/2 point Fed rate reduction, a weak Dollar and lots of prediction/discussion for either a recession in the short term, or inflation & higher interest rates in the long.What markets are going to be a good deal for you - will really depend how quick of a turn around are you looking on it.

My position is I dont have enough in reserves to qualify for another mortgage since I currently have five mortgages (basically I need about 28k in reserves and a little more for a soft rehab and closing costs to buy it with financing, I have about 18k liquid.).