Question About Creative Pre-foreclosure Deal?
Hi, again I have a question about a creative way to get pre-foreclosure and flip.
1. If I find a nice pre-foreclosure that can be fixed up and flipped in 4-6 months, can I do this and is it legal? Can I make a contract to have the deed passed to me after helping them catch up on their payments? After that the contract would state that I would have to take over the mortgage payments, until the house sells. In the contract there will be a set price for the pre-foreclosure price (before repair of property price). After the house sells (after repairs hopefully within 6 months for a higher price) I would give the owner there asking price for the pre-foreclosure and then I will have my profit
Any respond would be gladly appreciate, or suggesting in which I could make this deal appealing for me or the current property owner.
Howdy, a newbie to this forum...If you are going to flip the property, I would not do a closing. Consider your carrying costs while you are rehabbing and marketing the property. I would think of purchasing the property "subject to" the existing financing or doing a lease/option. What you are describing is a lease with option to purchase. Include an "and assigns" clause in either contract.. Then when you locate a buyer you assign the contract to them and your buyer will do a closing with you and the 1st seller. You can also consider a "double closing" . I am trying to avoid closing costs in your scenario.
I see..Thanks alot for your reply. I have another question, is it possible to make repairs on the property, while under lease option to buy. Also can it be possible for the owner to try to take the property back after its been re-model, and kick me to the curb.