If you will need financing in order to purchase your foreclosure, begin the procedure for getting your preapproval now. Your lending institution will let you know how much you can borrow based on your current income and credit rating.
If you have equity built up in the house you currently own and reside in, you can begin the procedure for obtaining an equity loan, a refinance, or a second mortgage to get the cash you need to buy your foreclosure. Chapter 6 helps you prepare a spreadsheet to use for comparing the financing terms that are offered by lending institutions.
From there, you can select the loan with the best terms for your current needs and future goals. Alternatively, if you know people who have the money to buy a foreclosure, but who have limited time to do the necessary legwork, think about purchasing with partners for now.
You can offer your expertise as your contribution, or if you have some funds of your own available, you can contribute a portion of the funds to the transaction in return for a larger share of the equity stake in the property, as discussed in Chapter 8. Another option to consider is an equity-sharing arrangement in which your role will be that of either the “insider” or the “investor.”