Just a heads up...I had this issue come up during my IRS audit.I had my wife's S-Corp hold a mortgage note on one of my commercial properties.

Court documents, or a call to the bank's REO department might get you to the person/persons to speak with concerning your interest in purchasing the asset.You may be able to purchase the note prior to foreclosure, or purchase directly from the bank post foreclosure.I worked for a California bank back in the RTC days and handled their REO portfolio in AZ.

Will it still cash flow to your criteria with the new note?

A lot of others doing flips, wholesaling, notes, everything..

Once I get the inspection, I make a note of what needs to be fixed and walk the property with a few contractors to get a bid on the work to be done.

I presume they bought a basket of notes from a bank?

Here is the formula I use for every property I look at:http://www.biggerpockets.com/renewsblog/2013/01/19/real-estate-math/I'll take a mental note of whether a property hits the 1% or 2% rule (if either) when I first look at the numbers, but that's as far as I go with those 'guides'.

If it's the first, you'll likely want a Promissory Note and perhaps a Personal Guaranty.

Zach has a $1.1M deal and we might have a hedge fund that can buy the note and make that deal happen We also introduced Kyle to a portfolio lender who can prequalify the buyers he will get on a fix-and-flip he is selling right now.

Cats on the other hand we avoid (their urine smells and stains) I should note that we do not have carpet in any unit We have no weight restrictions and our insurance does not change as long as they aren't certain breeds.