Case Study, Flipping REO’s For Profit! Make $10k For a Few Hours of Work!
Did you know you can make a boat load of money by controlling and flipping bank owned homes for huge profits between $7k and $15k? Just do a couple of these deals a year and you can dramatically change your finances!
We have a recent case study that we’d like to share with you, it actually has a really funny story. You see we normally make our real estate offers in the name of a land trust, and sometimes we have our real estate agent name the land trust. We recently made an offer on a property in Jerome on “F” street. Unknowingly our agent named the land trust “F Idaho Land Trust” (we promise there was nothing intended with malcontent). But we sure had some explaining to do to the closing agent!!!
Anyways this turned out to be a great project for us. The property was REO or “bank owned”, and the bank’s asking price was too high. But they were giving some serious indicators that they were willing to take a big discount (there’s some real signals to look for if you have a trained eye). We made a lowball offer and it got accepted, but we weren’t sure if there was a lot of room to make some quick money; this is when the real work began. We went through the house and wrote up a detailed report on everything that was wrong with the property and we submitted that to the agent representing the bank, who then submitted it to the asset manager. Turns out there was enough information provided that they were willing to significantly reduce what they would accept, and we got a reduction in our purchase price. Our report even convinced the asset manager that they should send out their own inspector, which they did, who confirmed our findings.
At this point many investors would only know to close on the property at the price that was accepted by the bank, because this was an REO property you’re not allowed to assign it. But with the tricks of the trade that we’ve learned we were able to quickly assign the property to another investor who loves to hold property for $10,000. Not bad for a few hours of work and creative thinking.
There’s amazing deals in this market if you know how to spot them and create quick pay days from them. If you’re looking for a deal sign up through our website and we’ll send you an email blast when we have an amazing deal. If you want to know how to creatively make $7k to $15k by controlling property, feel free to call us anytime.
Virgil Horner
Transaction Engineers
“We Make Deals Happen”
Phone: 208-308-0703
Web: http://www.transactionengineers.com
IRMPA, Imps, & Oompa Loompa’s
There’s really nothing here about strange mythological characters or singing freaks from Charlie and the Chocolate factory, but it sure does seem like the issues that we face with short sales in Idaho can be a little bit like a circus; and who really knows what they’re talking about when it comes to short sales? Real estate agents, the Idaho Department of Finance, the Idaho Real Estate Commission, or real estate investors??? I don’t think I can answer the million dollar question, but if we can keep this stuff in the open maybe we can come to a common understanding and all be more professional when it comes to serving the needs of homeowners and our communities.
It appears that in response to the “SAFE Mortgage Licensing Act of 2008″ the state of Idaho implemented the “Idaho Residential Mortgage Practices Act” aka IRMPA. To get straight to the point for real estate investors, IRMPA is being interpreted by the Idaho Department of Finance to cover the negotiation of short sales as a modification of a loan and therefore needing a loan originators license, even if you’re negotiating the short sale for your own business.
I’m not clear concerning the point at which this interpretation is in Idaho legal proceedings, but I know that the Deputy Attorney General, A. Rene Martin, has concurred (I always think of that scene in “Catch Me If You Can” when Leo’s pretending to be a doctor when I say or write that word, anyways…) with the Department of Finance’s understanding of IRMPA in relation to short sales and those who engage in the business of negotiating short sales for their own business interests.
This is a great challenge to investors in the state of Idaho who make a living at negotiating short sales. I personally know of real estate investors who have made great financial sacrifices to learn how to effectively negotiate short sales and invest in real estate who have been scared away by the hurdles that we’re facing in the state of Idaho.
These are some of the issues that we deal with on a daily basis in our short sale business, there’s links below if you want to research any of this further. I know for our business it’s always been about helping the homeowner avoid foreclosure and to make an honest living (I’m sure this is the case for the majority of real estate investors). Whatever happens I think it would be extremely unfortunate if laws were put in place that made it more difficult for homeowners to receive help, that helped to foster the loss of more jobs, and that slowed down the process of getting distressed homes into the hands of new homeowners who are starting families, making memories, and spending money in our communities.
LINKS:
1. The full blown version of IRMPA, http://bit.ly/c1NOar
2. Opinion of the Deputy Attorney General, http://bit.ly/d1TvOF
P.S. you can also check out the blog at http://www.shortsalesinidaho.com to stay up to date on this information.
Helpful links for Short Sale Investors
If you’re always quoting stuff about short sales but can’t remember exactly where you heard it, well then you’re like me.
I thought it would be useful to start posting links to information that’s critical to our short sale business here on the blog. One of the first links that we’ll share is a link to a Wikipedia page summarizing the “Mortgage forgiveness debt relief act of 2007″.
This was an act that George W. Bush signed that gives relief to homeowners from having to pay taxes on cancelled mortgage debt. This is a critical piece of knowledge when you’re talking to a homeowner who is facing foreclosure and is considering his or her options in light of a pending trustee’s sale or sheriff’s sale.
You can assure the homeowner that if they sell the property to you through a short sale and the bank approves your short sale offer that they will not be taxed on the debt that is forgiven. The original act was intended to cover debt forgiven in the calendar years 2007 through 2009, but thanks to the “Emergency Economic Stabilization Act of 2008″ this was extended to cover debt forgiven until 2012. (At least a few more years before struggling homeowners have to own up for debt forgiven)!
This is the kind of information that we have made a habit of printing out and hanging in our office so we can quickly and easily reference the information. Well here’s the link, be blessed and successful!
LINK: http://bit.ly/dnjKm9
3rd party authorization update
**Short Sale Update**
New Federal Rule 3rd Party Authorization
Release of Information Forms Must Now Include Additional Information
Here is a list of the required info for 3rd party contact with lenders in America:
1. Subject property address & loan number.
2. All borrowers of record Names, Addresses & social security numbers.
3. 3rd party info: Name, Address, Names of individuals calling in on behalf of 3rd party.
4. You must define exactly what information can be released to 3rd party by lender.
5. There must be an expiration date for the authorization release form.
6. The authorization must be signed and dated by borrower.
This is from a phone call with Chase this morning, we can’t verify whether or not this is really the case, but thought we’d pass the info along.
Virgil & Lucas
Transaction Engineers
“We Make Deals Happen”
Phone: 208-308-0703
Pennies on the dollar real estate straight to your inbox!!
Simply sign up and you will have all the info you need right in your inbox as it becomes available:
http://www.transactionengineers.com
That is how great the real estate UNDERGROUND is!!
What Is A Wholesale Property Anyway??
We define a wholesale deal as a deep discount property available for pennies on the dollar. Generally speaking such a deal is hard to find and you really need to get deep into the real estate UNDERGROUND find multiple properties of such a fine caliber.
Have you been looking to build a real estate portfolio? Now is the time to be buying, the UNDERGROUND is full of deals you need to become aware of.
