You get bare legal title at a foreclosure sale... 

After all, my business, my investments and my future were dependent upon these individuals so I wanted to put faces to names, and see if they passed the litmus test.I found my entire team via local REI Clubs.

@Pete Sailhamer are you saying:1. using an LLC, use 20% of your own equity to2. buy the properties at a 20%+ discount (aka "distressed value) and 3. finance 80% LTV using a private money / hard money lender and then4. cash-out refinance the properties to pull out entire initial equityI'm facing a simiailr scenario and would love to learn the best way to pull off a deal like this when there are several cash-flowing properties for sale (with equity).** I should mention my long-term goal is to build a portfolio of properties (~5) to obtain a portfolio loan DP's on 1-3 apartment buildings.

I flipped one at 41st and Illinois last year and made $27k. 3 blocks south and the houses are barely worth $27k.

Low ball him and show him all the potential problems you might be facing.

But as to price, buyers (investors and contractors) typically try to negotiate their best deal to make a profit at resale, and baring unethical behavior, the seller has to accept the deal and will only if the deal is worth it to them.

I now have a smile on my face and look forward to tomorrow and what it may bring=)

@Tee Allen I haven't used this strategy but in my experience, getting people on the phone or face to face tends to get results of some nature.

Brent and Steve: Thanks for the punch in the face--I needed it.Brent: Thanks for your response and let me clarify.The seller is asking me to pay $68950 to own 50% of the property--so my friend is not giving up his 50% of the property.

We were barely keeping our heads above water with all of them, thanks to 2 jobs and credit cards.