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.

If you want to loan someone money, and use a property as security, you need a Deed of Trust or Mortgage, depending on the area.

Your terminology and methods of mortgaging and transferring properties are very, very different!

Also us that method for identifying the real estate attorney, insurance and real estate agent (s).

Most municipalities that I've worked with use the F.A.R. method: Floor to Area Ratio An Far of let's say 3 to 1 means that on 1 acre of land (43560SF) you should be able to develop a structure with a maximum volume of: 3 x 43560 = 130,680 sf of floor on that piece of land.

I personally feel that it's a waste of money but I've been rehabbing for 15 years and have my own methods that work for me.

I have approx 36 employees finding properties that are priced at 50% of market value and below.I have methods of turning these properties in less than 30 days.I do not enter into any of these investments unless the risk is extremely low.The last deal I did had a 1900 % ROII'm working on one now that should Net 100% in under 30 days.I have over 9 years investing and am on a roll that will not stop.

Wouldn't it be in their best interests to secure a sale and obtain their commission?

What about damage done by tenants in excess of the security deposit?

I know there are a few different methods for wholesaling REO's and would like those who have done this before to comment on the process in more depth.I appreciate it.Dustin