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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Make equity in the buyout. Posted by SeanW on April 19, 2003 at 3:47 PM In Reply to: Re: JBB's in Flat Market? posted by Jorge on April 19, 2003 at 8:50 AM >I still have a missing link in your assupmtions. >First is foreclosing, second panic and wants $5c on the dollar. >You buy the 2nd ( you now have completed a JBB). >From this point in time,How do you make money? If the first + second together = FMV, the fact that you bought out the second for 5%, "created" equity in the remaining 95%. If the deal is good, the "found" equity will cover the reinstatement of the first, and the repairs, with profit left over. True, in a flat market, you can't expect any overbid at the sale to protect your 5% investment in the 2nd. So you have to be sure to get the deed and convince the owner to move. And this does stand a better chance of working in CA where homes are expensive, and people take out large 2nds. But that doesn't mean it can't work elsewhere. Follow Ups: Re: TOO RISKY Jorge 11:18 AM, 04/20/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : >I still have a missing link in your assupmtions. : >First is foreclosing, second panic and wants $5c on the dollar. : >You buy the 2nd ( you now have completed a JBB). : >From this point in time,How do you make money? : If the first + second together = FMV, the fact that you bought out the second for 5%, "created" equity in the remaining 95%. If the deal is good, the "found" equity will cover the reinstatement of the first, and the repairs, with profit left over. : True, in a flat market, you can't expect any overbid at the sale to protect your 5% investment in the 2nd. So you have to be sure to get the deed and convince the owner to move. And this does stand a better chance of working in CA where homes are expensive, and people take out large 2nds. But that doesn't mean it can't work elsewhere. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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