How To Buy A House In Pre-foreclosure Using Subject-To Financing and Avoid Costly Mistakes

We're revolutionizing the real estate industry through the power of creative financing. Find out more at sub2empire.com.

Real estate investing in pre foreclosures is an excellent way to acquire cash-flowing properties. Many real estate mentors and real estate coaches sometimes provide information about pre-foreclosure investing that may put you at risk, especially if you're going to be wholesaling pre-foreclosures. We also have an abundance of short sale investing gurus in the real estate investing space, but short-sales can damage your seller's credit. I prefer, whenever possible, to employ creative strategies like subject-to real estate investing.

In this video, I show you a strategy on how to buy pre-foreclosure homes, using the subject-to existing financing strategy. Pre-foreclosure investing has been the most profitable niches in my real estate investing business. If you're looking to wholesale pre foreclosures, we going to touch on the do's and don'ts as it relates to how to wholesale pre foreclosures. I'm going to show you an excellent source for pre-foreclosure leads and walk you through how to flip houses with no money, or a least very little money out of pocket using my preferred subject 2 real estate investing strategy that I use when I'm buying a house subject to the existing mortgage.

We're revolutionizing the real estate industry through the power of creative financing. Find out more at sub2empire.com.

In this video, I'm going to show you how to buy houses in pre foreclosure using subject to financing.

Some important things to note about buying houses in foreclosure...

1. Know What You Want Before Buying
Before you go out and buy a house, you need to figure out exactly what you want. Do you just want to flip it? Or do you plan on living there yourself? Is it a fixer upper? Do you want to renovate it? Once you know what kind of home you want, you'll be able to narrow down your search.

2. Be Prepared For Negotiations
Negotiating a price for a property is part of the process. But before you begin negotiating, you need to understand the seller's motivations. Why did they choose to sell now? Did they lose their job? Have medical issues? Whatever the reason may be, you need to find out so you can negotiate accordingly.

3. Don't Fall Into The Trap Of Thinking You Can Save Money By Fixing Up A House
It sounds like a great idea, but fixing up a house doesn't necessarily save money. Sure, you may end up saving money over the life of the house, but you're also going to spend a lot of money on repairs. And if you don't have the cash upfront, you may end up losing money instead.

4. Understand How Foreclosure Works
Foreclosures happen all the time, and they aren't always bad news. Sometimes, banks simply need to sell the property quickly to avoid further losses. Other times, the bank needs to recoup its investment. Either way, understanding how foreclosures work can help you decide whether or not to pursue a purchase.

5. Research Property Records
Once you've found a property you'd like to buy, you'll need to research the property records. These documents contain information about the owner, previous owners, liens, and more. They can give you insight into the current condition of the property and the likelihood of future problems.

6. Look At The Home Yourself
You may think that you can tell everything you need to know about a property based solely on the listing agent's description, but you really need to look at the place yourself. There are things that only you can see, such as cracks in walls or missing doors.

7. Ask Questions About Any Issues With The Property
While you're inspecting the property, ask questions about any issues you notice. Does the roof leak? Is the furnace broken? While these kinds of details won't matter much to buyers, they can mean big trouble for sellers.
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