Read "Long-Distance Real Estate Investing" by David Greene for starters.

@Jay Hinrichs which BTW, 6% is high.

We invest in some deals because they meet our Hurdle Rate/Return on Investment objectives. 

Hi, pre foreclosure in all of its permutations, before the bank sends Notice of Default (NOD) or efter which is state even county dependant but often starts a 4 week clock till the trustee auction are the 2nd most difficult deal scenario and IMHO only experienced investors should bother, the 1st most difficult deal scenario are bidding at the court house steps on lord only knows what is being auctioned off sometimes even 2nd mortgages, you need to do so much home work to attempt to reduce your risk at the court house steps...Pre foreclosure no one talks about these issues, always about the nice sounding stuff like "motivated seller" get a good deal etc etc both are usually not the case.- 95% of folks in pre or post NOD want to stay in their house, keep their house inspite of them 100% will loose the house at the auction. 

Quote from @Todd Boone: If it is, what kind of investment? 

I would go that route if I was looking to invest!

Too far above risk-free HYSA or money market yields. 

@Bryan HarveyJust realize they provide high returns but it’s my understanding your investment is an unsecured loan.

I would like to put the money into purchasing another investment property.

Most people think real estate investing requires huge capital, perfect credit, or bank loans—but that’s not always true.