Im looking at a los angeles county foreclosure list and i understand if you buy at the trustee sale all loans below the foreclosed loan get whiped away but what happens to the other loans if you arrange to buy the home from the owner before the sale?

We're in the very beginning stages of looking now so we're just looking at everything out there right now so we know a good deal when one pops up.

I'm only in the very early stages of learning about REI, so any solid information would be greatly appreciated! 

I'm single now and hope to get my first property or so under my belt before I move into that stage of life, living for someone else, too!

So my question is how to best structure a deal with one caveat being that I don't necessarily want to formalize a Landlord-Tenant arrangement given the amount of work the house might need if I had a housing inspector walk through, which could quickly kill any profit on the sale or bring the asking price out of reach for the tenant.

I'm still in the "ramp up" stage of my investing career, but with three units I can tell you I've never had a property vacant for more than 13 days. 

I think there are ways to create value, stabilize areas, etc. but the traditional relationships of investor-landlord / buyer-tenant are upended given the housing values...a 501(c)3 seems like the way to go for some areas and then a traditional LLC arrangement for other neighborhoods. 

I should also note that this doesn’t make this fee structure more “right” than another, it simply means that the vast majority of property owners and PM’s in our market have found it a comfortable/acceptable business arrangement.

I will also be at the Houston Real Estate Networking Club tonight if any Houstonians would like to send me a P.M. to arrange a meet-up at the event.

I'm very much in the learning stages but have decent financial modeling skills and a MBA which should help me get started.