OfflineSo I have ran across a lot of home owners that are in pre foreclosure however most of the time they either want to....
A) stay in their home
or
B) Sell the house for more then what they owe
Most of the time when they call me or come to me I tell them I can buy the house for what they owe or I can do a short sale with the bank.
The problem with this is, it leaves them with nothing the only thing they get is possibly not getting a bad credit score for 10 years. So I want to know what are the magic words that will get a homeowner who is going into foreclosure to say yes.
If a person calls one of my ads and tells me they are going into foreclosure. They owe 30,000.00 on the house and the house is worth about 120,000.00. They paid around 70,000.00 while living in the house. How can I get them to feel good about giving up their equity to me?
I want to buy a home for my family in GA but I live in PA at the moment. I dont want to live my job yet because I have not got any job offer in the field am currently working, but at the same time I want to get a home soon because they have good deals out there and the home are big and beautiful. My question is, how do I get the home without 20% down because I dont have that money now?
Mchizy
You need a hard money or private lender and a bank that will do a no season refi. If you buy the house 50% off and you have a hard money who will loan you 65% with point ect...and a bank that will do a no season refi for 80% you can pull cash out. After that you can cash flow on the house after selling or renting the house without using your own money.
In your example of the homeowner having a 120,000 House that they only owe $30,000 that would be $90,000 in equity. Any repairs needed would take away equity. Say it needs $15,000 remodel. Equity is now $75,000. You should be able to get some of that equity back to the homeowner! Offer $63,000 on the house! That is 65% of ARV after repairs. That is a FAIR offer and a win, win situation for everyone. Always help distressed homeowners whenever you can, it is not about making all you can on every deal! Equity stripping is not nice and gives investors a bad name! The courts don't smile on it either. If you were to fix/flip this example you would net around $35,000 yourself! The homeowner would get back $30,000 or so of their equity! Everyone is happy! Don't get greedy. If you were to just assign your contract at 70% of ARV after repairs your fee would start at $6,000.
This could be a good deal if you make it a win,win for everyone!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
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I saw an informercial this morning that Dean is holding workshops in Pennsylvannia March 14th to the 16th does anyone have info on this and where do I look to get registered if it is true I am a newbie, I have been following Dean as long as Matt but I ma just now ready to jump in. Personal reasons held me back I need to do something for my daughter and my future. Thanks everyone.
No matter what, you need to make it a win-win for everybody. I've been helping out or I guess "mentoring" a guy over email/phone, buy helping him sell a wholesale deal to his end buyer. The problem in the begining was the origional wholesaler wanted a $50k wholesale fee! Yikes. He finnaly got her to whiddle down to $20k, but still ~ you gotta leave some meat on the bone or the buyer won't bite. When someone else brings you a buyer for your deal and they excercise that right to purchase, it makes sense. I like it that way, though. As long as you have the docs and fee agreement in place & somebody else brings a buyer, I'm all for it.
This could be a good deal if you make it a win,win for everyone!
Michael Mangham
MD Home Acquisitions LLC
This could be a good deal if you make it a win,win for everyone!
Michael Mangham
IMHO this is the way to do good business. I've tried to treat people the right way and give them alot more than most so called 'investors' would offer them.
Thanks Michael
Mike
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
This is what I would do. If you could talk to them into doing a seller fianacing. (Not sure if you have the money to pay upfront so this is why i recommend this) Write everything in concract,Where they would give you 1 year to purchase the property anytime you decided to excercise the right. At this point you can either do 1 of 2 options.
1) Find out what the average rent goes for in the area and what the morgage + all other fees add up and see if it works out to rent the place. Till you get your finances in order and can purchase the house yourself and either keep for rent or flip. What ever you want.
2) Offer to make payments yourself on the mortage and post an adds selling the property for 110,000 to give some insentive to new buyer, you could even go for 100k. Once you find someone payoff the origanal 30k it owes you are left with 80k profit at this time you can give 40k or even a bit more to the origanal owners and you still walk away with more than 20k to 30k profit after subtracting what ever months you had to pay of mortgage. This way the owners walk away with money in there pockets, they dont ruin there credit, your making payments on there house for the meantime. You walk away with a nice profit at the end and the new buyer found a nice house undermarket value. win win for everyone.
I know there is probably alot of legal things to work out but thats how i see it. Might be something to consider and offer them. You never know what they will say till you ask.
as always,great advice; especially about not trying to strip all the equity from the sellers.
That is way we advertise ourselves as investors who can "help".
wishing you success,
valerie
Valerie
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