Now what I do if find someone in preforeclosure or relocating or going through a divorce. They need to move, and NOW!

I will step into their shoes and start to make their payments on THEIR existing loans. Usually this consists of making up the missed payments.

A few minor repairs and I have it out on the market. I am usually able to buy at 85-90% of current market value.

On houses with major repairs I have been able to do the same thing, but I am able to buy at about 60-70% of market value. This is my after repair percentage.

Based upon the need to keep money flowing I use other peoples money to do the repairs or making up the back payments. They get it from their IRA's.

Now, we do sell our houses, after a year, and keep a few as well. It just depends on if we have a better house to buy at that time. Also, you can't eat equity.

I agree, DO NOT BUY IN WAY ZONES. Now, with that said, I know of some guys here who are buying over 100 houses a year and making great money by doing just that. They have about 100 houses that they have kept free and clear by selling off the others.

I use a great deal of marketing to generate leads and to do follow ups with people looking to sell their houses.

Thanks Michael

Terry