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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Details of the junior bene buyout manuver. Posted by Ward-CA- on August 13, 2003 at 9:41 PM In Reply to: Buying 2nd TDs posted by Jim Shrout on August 13, 2003 at 2:56 PM : Ward... : I havent yet taken any of your courses, however, i intend to soon. Having said that, will you please answer a question regarding buying 2nd's... : How do you "choose" which 2nd to buy? What criteria used? : I assume it should be on a forclosure property, correct? : How do you know how much to offer the lender for the note? : In California I would assume that the lenders would want at least 70-80% of the face value, correct? : I'm not digging for answers to your training techniques its just that im confused on the process and hoping to get a "deal" done so i can afford the costs of your training program. : Thanks Ward. : Jim -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- Jim, The answer to your questions of what to buy and what to pay boil down to my favorite foreclosure word, “Equity”. My interest in a deal rises or falls in direct relation to how much equity is available. For instance, the 2nd’s that I buy, when added to the amount of the 1st’s above them, can’t total more than 80% of the current fair market value of the secured properties. Obviously then, I have to discount a 2nd enough that I’ll receive a nice chunk of change when it is fully paid off, either at the foreclosure of the 1st or through the refinancing or resale of the property prior to the upcoming foreclosure auction. On my deals I bargain from a 1/3 to a 1/2 for the purchase of the 2nd. Hope this helps. Follow Ups: Buying 2nds With Intent to Foreclose? SeanW 5:32 PM, 08/17/03 (1) The available equity is determinative... Ward-CA- 9:06 AM, 08/18/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Ward... : : I havent yet taken any of your courses, however, i intend to soon. Having said that, will you please answer a question regarding buying 2nd's... : : How do you "choose" which 2nd to buy? What criteria used? : : I assume it should be on a forclosure property, correct? : : How do you know how much to offer the lender for the note? : : In California I would assume that the lenders would want at least 70-80% of the face value, correct? : : I'm not digging for answers to your training techniques its just that im confused on the process and hoping to get a "deal" done so i can afford the costs of your training program. : : Thanks Ward. : : Jim : -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- : Jim, : The answer to your questions of what to buy and what to pay boil down to my favorite foreclosure word, “Equity”. My interest in a deal rises or falls in direct relation to how much equity is available. : For instance, the 2nd’s that I buy, when added to the amount of the 1st’s above them, can’t total more than 80% of the current fair market value of the secured properties. Obviously then, I have to discount a 2nd enough that I’ll receive a nice chunk of change when it is fully paid off, either at the foreclosure of the 1st or through the refinancing or resale of the property prior to the upcoming foreclosure auction. : On my deals I bargain from a 1/3 to a 1/2 for the purchase of the 2nd. : Hope this helps. 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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