Make sure you have a "sufficient" security deposit.

. ($350)One is on social security and is disabled – other pays rent cashiers check ($275)Unit mix 2 x 2 bd/ 1 bth Here are the numbers:Price $26,000 (they will only accept cash) I can come up with about 10k in cash but would have to take a personal loan to cover the restGross Rent: $7,500 (100% occupancy consistently)Expenses –A) $1975 (owners claims with property mgt included)OR –B) $3000 (if I assume a 40% of rents =expenses) NOI:$5,525 (if use A expenses)OR$4.500 (if use B expenses)Even if I was to 100% LTV at a $26K price at approx 7.5% Annual Debt Service would be: $2340So Annual positive Cash Flow would be: $3185 (if expenses A – owner claims) (or $265 a month)OR $2160 (if expenses B – using 40% of gross rents) (or $180 a month)Repairs known (before property inspection) needs new exterior and interior paint (additional $1,500), Roof is approximately 10 years old The money seems small but consistentDuplex Located in Buffalo, New York There have been a lot of foreclosures in that area – some I can tell were investorsOn the plus side, these tenants don’t seem like they are going any where soon.

Real Estate Agents and Short Sale Investors do not mix simply because the SS investor has no security that his/her offer won't be topped by somebody else who comes in 2 - 3 months after negotiations have started.The REA's job is to look out for the best interest of the client so they are more than happy to present a higher offer to the seller and why wouldn't the seller sign it.

Moya isn't registered to offer securities, but that is for the authorities to determine, not us.We were forced to go to the authorities and we are also going to be filing a civil suit against him, if only to make this matter public to spare others from the agony that we have had to endure.

I'm glad I was "sorta kinda" on the right track.Much appreciated, Oh, would I be correct in saying that I would be treating the profit on this as regular earned income and not some other more complicated thing?

If the closing is similar to a regular house closing, could I expect or try to negotiate any costs into the final price and you said before the title contingency is not necessary (of course an inspection though) -- is it automatically included as the bank had to do this anyway when they assumed it on their books?

I would like a little more thought on this…as to how does the whole thing work and how can we invest properly in pre-foreclosures to earn secure profits.

Might anybody have a sample contract that a bird dog might use to secure his/her interest in the property if the investor purchases it?

For example, Texas has 254 Counties; however, almost every city, town, and ISDs-Independent School Districts are also able to conduct Tax Sales as well----that's in addition to the regularly scheduled Tax Sales at the county level--these properties are subject to a redemption period.

Many localities have real estate clubs that hold regular meetings and networking events just so that people in the business can get together and get to know each other.