Plus MIP/MI/PMI is higher on FHA so even though your FHA rate will be lower, your APR will typically be higher than a conventional loan.

I am sitting on a great pre foreclosure opportunity, my neighbor just received a pre foreclosure notice from their bank.

Most importantly there’s a group out there called the SEC and according to their guidelines you need a pre-existing relationship with anyone who you’re looking to raise equity from.

A Pre-Foreclosure is not a Foreclsoure.

If I am ever going to do more than 1 at a time, I will need investors.I suppose I could offer a cash investor 12% APR or something like that.

And to Account Closed 's point: while FHA rates are lower, MI is much higher so your APR (overall payment) is typically higher.

Making offers without a pre-approval letter is dicey, although it doesn't appear to be necessary (full disclosure, when purchasing my first home, I personally treated it as a necessity).If I was in your position, I'd likely try to pursue a means of funding first before deal hunting too aggressively.

Is it near a university, ski resort, canyon, or other attraction? 

If I have cash into one of our properties then my own cash makes 12% APR and the $100 is over and above the 12% that I am making on my own money invested.For instance say we have a property with a current market value of 75k and we have a loan on it for 45k and after all expenses we are cashflowing $300 a month on it.  

Since March I have mailed a total of approx 1800 letters distributed pretty evenly across Mar/Apr/May/June/July.