Bulk Foreclosure Deals

Get your mind out of the burbs and into the gutter! Many, if not most, new investors, who haven't spent much, if any, time in the hood, are the same way I was when I was just getting started, apprehensive, if not, fearful. (Apologies, if I'm not culturally licensed to use the term, hood. It's what I'm used to calling the older, inner-city neighborhoods.)

The natural tendency is to look for deals in the suburbs. It ain't gonna happen. When I talk with new investors who say, no war zones or not these zip codes, I say, call me back in a couple years when you've found your first deal. The "spreads" or profit margins simply aren't there. The deals in the burbs are usually proportionate to the repairs required, where the deals in the "rougher" areas have disproportionately higher profit margins.

For our puposes, the inner-cities or older, lower-end neighborhoods are where you wholesale. I have come to learn that whether or not a neighborhood or individual house is "nice" is all perception, anyway. I now see beauty in all structures. A good wholesaler looks beyond the filth, stench and decay. A good wholesaler sees a house just like a good rehabber, for what it could be, not for what it currently is.

Check the REO Inventory www.bulkforeclosuredeals.com

As a property investor it's important to keep up with trends and news, but you also need to be able to separate fact from fiction! One of the biggest false stories in the media recently has been claims that double closings are illegal. They are not.

This misinformation has arisen from a number of indictments on what the media has described as "property flipping scams" which is totally different to double closings. Under the double closing system, the funds from the second closing are used to pay out the first closing.

An escrow system is used so the agent, or middleman, can trade the property and make a profit without using their own funds.. It is a legal, ethical and profitable process which investors have used for a century or more to create wealth.

You've probably read about what has been referred to in the media as illegal property flipping schemes whereby some people purchase inexpensive, poorly maintained properties , then carry out poor renovations and resell the property to naïve purchasers at ridiculously high prices, way above market value.

Generally it isn't the sale that is illegal, but the loan process as all those in the lending chain conspire to submit illegal loan applications in conjunction with a false appraisal. As a result, buyers end up with an over priced house and a loan they can't repay.

Unfortunately for the scammers, a lot of the loans are insured by the Federal Housing Authority (FHA), a government authority, which has now cracked down on the scheme and many of those involved now face the long arm of the law!.

If you read a media article, or hear a real estate agent or mortgage broker claim flipping is illegal you know they are wrong and you need to look further for up to the minute, well informed comment.

The controversy has had some affect on the industry with some title and escrow companies refusing to do double closings. Those that do continue with the practice quite rightly are well aware of the potential for fraud.

As a property investor it's up to you to remain in control of your deals, stay ahead of the process and anticipate issues that can affect the close, particularly if you are buying and reselling a property quickly using a double close.

Be aware that some financial institutions have implemented a "seasoning" process on the vendor's property. This means that if the seller hasn't owned the property for six month or more the financial institution will treat the proposal as suspect and reject the buyers application to borrow money.

This will leave you in big trouble if you purchased the property cheaply and are selling it on in a hurry for a profit. Before signing the contract make sure the buyer, their agent, and the conveyancing lawyer are all aware there could be a seasoning issue.

Better still, if you are really in control of the whole process you will be able to steer the buyer to a lender who is familiar with double closing and will ensure it is a smooth process. Remember, seasoning is just an underwriting suggestion, it isn't a law which has to be enforced.

Don't hesitate to go approach senior management if there appears to be a problem and the sales is likely to stall under red tape. You also need to be aware that when the buyer has applied for an FHA insured loan they can't avoid the ownership period requirement as FHA rules specify the seller must have owned the property for at least 90 days before selling it on.

There are no exceptions to this rule. This rules out the buyer going with an FHA loan in a double-closing but shouldn't be such a problem if you plan to repair and flip the property as it will probably take 90 days to do the repairs then sell the property.

Overall, only the FHA and sub-prime lenders invoke this requirement. FNMA guidelines have no restrictions on providing funds to purchase a property when the vendor is "turning it over" quickly.

Don't panic if some delays occur right up to signing hitch in a double closing situation. You can exercise what's called a "reverse assignment". In this case you just redirect your contract with the last buyer back to the owner and withdraw from the deal.

In this case, your "fee" replaces the potential profit on the deal. Make sure the arrangements have been documented clearly and secured by a lien on the owner's property so you receive your fee on closing.

Double closings are attractive for investors interested in flipping houses because they allow you to get around financing requirements by quickly moving money from one account to another, keep your purchase price secret by never exposing your contract, and work with less liquid buyers because the "assignment fee" is financed .

The first step is finding an attorney who understands, and is prepared to perform the double closing for you. Then you have to convince the buyer it's a good way to go. Scheduling the double closing is the biggest challenge in the process and involves some element of risk.

There's nearly always a last minute glitch, which may mean having to delay settlement for a few weeks, leading to your contract expiring, which in turn can led to you losing your binder, and then losing credibility by reneging on a contract.

Make sure you allow for all these factors in the contract - it will save you a lot of stress! Make sure you know all the risks and processes involved before trying a double closing.

Learn how to make moeny in real estate in this down market we have and are willing to share!

We have been a part of over 3000 transactions in the last 18 months and still going stong learn how to buy homes from banks, asset managers, hedge funds and private sellers. Your ask why do I need you I can go to the bank my self and any one can but the difference is the banks have a track recored already with asset managers, hedge funds and private sellers that all ready going and by from the bank 100-500 homes per month and resell them to anyone at deep discounted prices.

Your ask your self do I want to wait three or more years to see the market turn around or do I want to start making a living now like I use to in this down market?

If you asnwered yes to making money in this market now then click here if you want to wait on the side lines hoping and wishing for one listing good luck. I can teach all the tricks the big boys are using right now to aquire these properties and sell them for a profit. How would it feel if you could pick up a home for less then $10,000?

Want my free e-book email me below I send it right out!

Email me: info@bulkforeclosuredeals.com

Want to invest but with out the hassle of rehab or property management? Then click the link below--->

www.junkhousecashflow.com

During the interest only boom, banks stupidly gave out money like cotton candy at the fair. Caught up in this give away were tens of thousands of unfortunate souls who otherwise would have never seen the inside of a home in a regular market, who's properties are now owned by banks who are desperate to get rid of them any way they can.

There are a few big investors making amazing cash flow numbers from these properties, but by and large there are only a few small investors who have the know how to get it done. This is a shame really, because it's fairly simple to do and the biggest bargain in investing right now.

Infomercial Reality Check

Ever watch one of the real estate guru's talk about wealth through real estate investment? Most of those guys got rich off these types of homes. I know what the infomercials say but in reality if you were to check their actual investment history you would find that in a year just like we're having right now they invested their money in bank owned, extremely distressed properties. They put in a few dollars to make them livable and sold them for huge discounts so almost anyone could buy them.

There's a Catch...the best properties are probably not in your neighborhood and probably not even in your state so when you invest your hard earned money into their program, you find out pretty quick it may not work where you are.

There's a Solution...With just a little help you can buy these properties at less than 20 cents on the dollar...get someone to buy the home...fix it up themselves...for a positive cash flow...and never leave the inside of your home. It's happening all the time right now, but won't last forever. It's one of those moments in history where all the conditions are right for average investors to make a significant profit without significant expense.

It Gets Better...for a little extra...there are those who provide services and will do it all for you. Think about what I just said; you make a small investment...add a little extra...and someone else does all the work while you get most of the benefit...hands off...no rehab...no negotiating...no selling...no brainer.

Let's Do Yesterday's Math

In an average market, you go out and invest in a home to do a simple fix and flip. Let's say for convenience you invest $60,000 for a home worth $100,000. This is a bargain to be sure. You then put in $10,000 to fix it up enough to attract a buyer and sell it then for $80,000 to move it quickly. Your profit is $10,000. Or you do a lease option and begin receiving $1,000 a month thus receiving $12,000 over a year's time. Does this sound familiar? This is the normal pattern of investing for one or two homes at a time.

Modern Math In Today's Market

You start out testing my method investing in one home for less than $30,000 which is valued at $40,000 (This is the low end before rehab). You spend $500 to have a sign put in the yard (No rehab remember) still less than $30,000. You begin fielding calls from buyers. You accept one and begin receiving $400 - $500 per month as cash flow on a note worth $59,000 - $69,000 after rehab. Did you catch what just happened?

Now let's say you took the same $60,000 and instead of one home you now own 6 of them. The cash flow would then be $1,500 - $2,100 per month. Let's say you wanted to sell the note...there are plenty of investors who will take that note off your hands for 50 cents on the dollar after the home has been occupied so the value would be $15,000 to $20,000...each. To recap...$60,000 in...$90,000 to $120,000 out...50% to 100% ROI in less than a year.

So...which model meets your investment needs...old school...or new school

Click here for new school www.junkhousecashflow.com

Are You Tired Of Gambling Your Money In The Crap Shoot That Is The Stock Market?

Are You Tired Of Playing Russian Roulette With Your Family's Savings And Your Retirement Funds?

Are You Sick Of The Low Interest Rates Of Return In Your 401k, IRA, Savings Or CDs?

Is The Hard Earned Cash That You Have Trusted To "Professional" Mutual Fund Advisors Secured And Consistently Earning What You Expect?

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If your answer to all the above is "Yes!", and I'm pretty sure that it is, then you're at the right place!

WOULD YOU LIKE TO REAP THE REWARDS OF INVESTING IN HOT REAL ESTATE WITHOUT HAVING TO BE ACTIVELY INVOLVED?

We are currently seeking individuals with $15,000 - $500,000 of capital to invest, that desire to reap the rewards of investing in real estate, that don't have the time or energy to manage projects, but would still like to reap the lucrative rewards.

Come fill out your inquiry before time runs out. Foreclosure markets will not last forever. This a first come first served basis. Foreclosures like this happen only once every 20 years and this is where millionaire's are born.

Fill out your inquiry at: www.junkhousecashflow.com