Preforeclosure Strategy
I am working the San Jose and San Francisco areas looking for preforeclosures. I am new and looking for ideas and advice on a strategy that will work for me. I do not have any money personally to put into deals and cannot use my credit either. I have looked at some posts that refer to bridge loans. What are these exactly? Can a bridge loan or something like it be used to make up a sellers amount in default, pay off their loan, and give them some of their equity while I do a quick flip on the property to take a quick profit? I have decided that flipping is what I need to do at first to get some cash in hand. Any suggestions? What is anyone's experience with hard money lenders that lend solely on the merits of the deal without looking at credit scores? I have run across a few that advertise online that say they will do this, just have not contacted them as of yet. Any advice would be greatly appreciated.
Jason,
Monterey, CA
Has anyone heard of or have experience doing a "double close", meaning to take possession of the property withought having to take out a mortgage and sell it to another investor or homeowner and make a profit. Also, what about the website shortsaledeals and the book called Making Money with Short Sales?
hello jason
don't know much about bridge loans, but i do know that there is a great deal of information on books in the products and services section on this site, also on "flipping" homes. In addition to that there is a wealth of information on this forum and in the sub-to as to strategies that will work. You will find that different strategies will work on different deals. But these guys are extremely creative and seem to have an answer for everthing or can at least point you in the right direction.
As far as taking posession of the property without taking out a mortgage you might want to check out the wholesale forum. hope this helps.
bump
Jason,
As you are probably finding out, there cannot be enough said about getting a proper education on the subject so you don't go out and make very costly monetary and legal mistakes. I would suggest you hone your marketing and problem solving skills in order to control the deal and have an experienced investor with resources actually make the deal. If you bring to this investor deals that make sense, he will not only pay you a fair finder fee but will also let you stick around and learn. You can then partner with him on some deals or use the cash you make in the first few deals to possibly do one on your own. I wish you Good Luck!
Dave
Ramona, Ca.