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Last Updated: May 14th, 2012 - 22:24:01 |
STEP BY STEP?
HOW WE PUT TOGETHER REAL ESTATEDEALS AND SQUEEZE OUT THE COMPETITION IN THE PROCESS!
People often ask us, “How do I find dealsin this competitive
market and what do I do once I find them?
OK, I'm going to tell you how we put together deals and how
you can too while beating the competition in the process.
But first, here's something most investors overlook and they
lose around $1,000 each time they do a deal.
HOW TO GET THE IMPOUND MOOLA!
We buy properties subject to the underlying mortgage.
That simply means we give the motivated seller a little
money (not always) and take over the payments of the loan that's already in place that's in their name.
Many investors buy property this way. When they sell the
property they usually never know they can get a check
from the original lender for the extra money that was left
in the impound account. This was money collected monthly
by the lender to pay the taxes and insurance.
That often adds up to around a grand or more and it's easy to get…if you know what you're doing.
Don't worry, I'm going to tell you how to get it right now.
When you buy a property subject to the underlying mortgage,
always get all the owners of the house to sign a Limited Power of Attorney giving you control of anything having to do with the house.
That way you don't need their cooperation down the road when they are no where to be found.
When you go to sell the property, send the lender a request
that the impounds be sent to you or your company.
Always send along a copy of the Power of Attorney so the lender knows you have the power to do this.
Also, give these instructions to the Title Company or attorney handling the closing of your sale so they can
make the same request to the lender.
We just received a check from a lender for the
impounds this week. It was in the amount of $1,357.00. Yeah!
The check was made payable to the 2 sellers whose names
were on the loan C/O our company name. Not perfect.
But at least, we have a separate Power of Attorney for each of these individuals. We took these forms along with the check to the bank where we had our checking account and explained the situation. Here's what they had us do
On the back of the check, we signed each person's name and after each signature we wrote:
By (and then we signed our own name).
Then we signed our company name and again (By) and then we signed our own name and position in the company.
That was it! Simple and an easy way to get an extra grand.
Most investors don't realize they can do this and never try.
HERE'S HOW WE PUT TOGETHER REAL ESTATE DEALS AND BEAT THE COMPETITION IN THE PROCESS!
We find areas with houses we want to own that we believe are good that have a strong potential for appreciation.
We then spend about 10 minutes mailing out thousands of postcards to these areas letting them know we can help them out with their real estate problem if they are having trouble making their payments.
In every area of every community nationwide there are
people struggling financially.
That is true for any area you target as well.
After doing our marketing for a while we begin getting phone
calls from people who need our help.
Often these people are current with payments but just can't make any more. Other times they are a couple months behind on their payments.
Even though they are in a financial bind, often their lender
has yet to file a notice of default…in other words, the
foreclosure process has not yet started!
This means no other investors know about the situation and you have an exclusive chance to get the deal.
THAT'S POWERFUL! Not tomention PROFITABLE!
Once we come up with a solution that will workfor the seller, we take over the payments of the underlying loan by
purchasing the house Subject To the financing.
Once you control the property you can rent it out, flip it for fast profit, sell the contract etc.
This is how in even a very competitive market you can place yourself in front of your competition!
About The Author - Mark Walters has written
"The Complete Guide to Judgment Investing".
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