Ward takes the stairs.

InnoVest Resource Management's

Foreclosure Forum


Discussion Board

"Hands-On" Training

Title Holding Trust

Annual Reunion

Speaking Schedule


Foreclosure Fundamentals

Code References

Recent Legislation

50 State Foreclosure Basics

Foreclosure Glossary

Foreclosure Statistics

75+ Yrs Interest Rates

Fillable Forms

Archived Articles

Dingbat Retirement Plan



Contact / Map | Priceline Tips

About Us



Innovest Resource Management BBB Business Review

Junior Bene Buyouts

If there's a "stealth" approach to profiting from foreclosures, it would have to be doing junior bene buyouts. It's such a quiet process that just one person (the junior bene) would be the only party you'd ever contact.

It truly is that proverbial real estate procedure that takes little time, little money, and little expertise. It is something that wouldn't require you to quit your present job; it wouldn't require you to partner with anyone; and it wouldn't require doing any evictions, rehabbing, reselling or ever meeting or talking with the home owner in default.

And best of all, none of the "pros", amateurs, or maniacs that are fiercely over-bidding everything at the trustee's sales would ever know you even existed!

What's so great about doing junior bene buyouts is that they work best when the foreclosure competition at the courthouse steps is at its craziest, nonsense levels.

The object of a junior bene buyout is to buy, at a 50% discount or more, a private party's 2nd trust deed that's secured by a property where a bank's 1st trust deed is in foreclosure. Generally the property would be a single family residence that's occupied by the defaulting home owner, who stands to lose $25,000 or more in equity if he or she doesn't refinance or resell the property before it is sold out from under them, at the lender's foreclosure auction.

If the defaulting home owner successfully cured the foreclosure through a resale or refinancing of the property, and you were the holder of the 2nd trust deed at the time, you would be cashed out of your discounted position at 100%, including all unpaid principal, accrued interest, late charges, out of pocket expenses, etc.

You could realistically do this activity with about $30,000 in cash in today's market. You could easily work it evenings and weekends and would probably want to subscribe to a local foreclosure notice service and have ready access to information on the present market value of homes in your county.

The two special skills you'd want to develop would be the ability to determine all liens against the title of real property and how to skip trace the whereabouts of junior beneficiaries. Most of your business would be conducted by telephone and mail and a drive-by of the foreclosure property and its current comparables to verify its present market value. You'd also be visiting your local county recorder's office about once a week.

To our knowledge, this topic is not being taught anywhere by anyone except by us. That's because it was something we perfectedover years of actual foreclosure experience. Since most foreclosure authors don't actually work the business full time they only have time for the traditional foreclosure activity and aren't prone to explore new, profitable niches.

Our Junior Bene Buyout class takes 5 hours and comes with all necessary materials and forms. Tuition for one party is $1,200.00 and drops to $1,000.00 each if the trainee is willing to attend with someone else.

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2024, InnoVest Resource Management

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455