What is a fixer-upper?
A property that is selling below market value because it needs repairs. A real estate investor buys it, fixes it, sells it, and profits!
What is a pre-foreclosure?
A property about to enter the foreclosure process because the owner has not been making payments to the lender. The homeowner will often agree to sell the property to an investor below market value in order to avoid foreclosure. By doing do, the homeowner saves a portion of the equity built up in the property and also to saves their credit rating. By buying the property below market value, the investor stands to profit by re-selling at full market value.
