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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Marvelous, simply marvelous!! Posted by art on August 14, 2003 at 2:47 PM In Reply to: Re: Marvelous, simply marvelous!! posted by Jim on August 14, 2003 at 11:45 AM : : : : I closed on a contract to reinstate(53k) on a conventional 1ST Loan of 400k scheduled for sale taking "subject to" a small private 2cnd loan of 10k. My agreement was to reinstate only until after the close of escrow. The sale which was to take place the day after the close was just cancelled because ..... drum roll please....................THE SECOND (which I figured was planning to walk from the deal) REINSTATED THE FIRST !!!! So I only had to put up 5k for closing costs and only need maybe 20k at most to clean up property with a realistic net profit of close to 100k after all is said and done. Now that's why I got into this business!! : : : Jim and others: : : : : : : Here's the deal: : : : 1st loan 400k ( take subject to) : : : arrears on 1st 53k ( what 2cnd reinstated) : : : 2cnd loan 10k ( take subject to) : : : other jrliens 30k ( take subject to) : : : closing costs 5k ( what I put up) : : : est fixup cost 20k ( what I will put up) : : : est carry cost 15k ( take subject to ist loan of 3k per mo based on 5 mo hold - by the time they refile their nod I will have already resold the property) : : : closing cost on : : : resale 7k ( comes out of resale escrow) : : : total cost 540k : : : est net resale price( after 2.5% comm) 640k : : : est net profit 100k ( based on 25k investment and 5 month hold - ridiculous roi!!!) : : : : : : Hope this explains better : : ==================== : : Art, : : What did I say earlier?? Great Job!! : Art, thanks for the additional detail. I echo Ward's "attaboy!" and figure you to make poster boy for how to make money in the foreclosure business. : Ward, are the mechanics of this kind of deal what you teach in your JBB course? I guess one of the other questions that lurks in my mind is: "To what extent was this deal handled through the owner and how much was actually transacted through the lien holders?" : After doing a lot of research at the local County Recorder's office and either being rebuffed by owners, having them file bankruptcy, or make good, I'm starting to believe the best way to crack this is to do the JBB's and rely less on the owners' foibles. : Jim Jim, Thanks for the kudos. The success of this deal was based on hitting the trustor early w/ significant follow-up once he expressed interest in doing some type of deal. I'm a firm believer in not spending time on dead-ends so when someone says they have some interest in what I'm offering I'll keep the dialogue going until there is some type of resolution. But timing is critical as to when to make the hard sell vs the soft sell. Often an "art form" that can be mastered after learning from the rejections and failures. Remember - if you fail 7 out of 10 times in baseball you're in the hall of fame. In this business 9 out of 10 failures can be a nice monthly income if your average 20-40k per hit. Keep trying and learn from your failures and repeat your successes. Art Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : : : I closed on a contract to reinstate(53k) on a conventional 1ST Loan of 400k scheduled for sale taking "subject to" a small private 2cnd loan of 10k. My agreement was to reinstate only until after the close of escrow. The sale which was to take place the day after the close was just cancelled because ..... drum roll please....................THE SECOND (which I figured was planning to walk from the deal) REINSTATED THE FIRST !!!! So I only had to put up 5k for closing costs and only need maybe 20k at most to clean up property with a realistic net profit of close to 100k after all is said and done. Now that's why I got into this business!! : : : : Jim and others: : : : : : : : : Here's the deal: : : : : 1st loan 400k ( take subject to) : : : : arrears on 1st 53k ( what 2cnd reinstated) : : : : 2cnd loan 10k ( take subject to) : : : : other jrliens 30k ( take subject to) : : : : closing costs 5k ( what I put up) : : : : est fixup cost 20k ( what I will put up) : : : : est carry cost 15k ( take subject to ist loan of 3k per mo based on 5 mo hold - by the time they refile their nod I will have already resold the property) : : : : closing cost on : : : : resale 7k ( comes out of resale escrow) : : : : total cost 540k : : : : est net resale price( after 2.5% comm) 640k : : : : est net profit 100k ( based on 25k investment and 5 month hold - ridiculous roi!!!) : : : : : : : : Hope this explains better : : : ==================== : : : Art, : : : What did I say earlier?? Great Job!! : : Art, thanks for the additional detail. I echo Ward's "attaboy!" and figure you to make poster boy for how to make money in the foreclosure business. : : Ward, are the mechanics of this kind of deal what you teach in your JBB course? I guess one of the other questions that lurks in my mind is: "To what extent was this deal handled through the owner and how much was actually transacted through the lien holders?" : : After doing a lot of research at the local County Recorder's office and either being rebuffed by owners, having them file bankruptcy, or make good, I'm starting to believe the best way to crack this is to do the JBB's and rely less on the owners' foibles. : : Jim : : Jim, : Thanks for the kudos. The success of this deal was based on hitting the trustor early w/ significant follow-up once he expressed interest in doing some type of deal. I'm a firm believer in not spending time on dead-ends so when someone says they have some interest in what I'm offering I'll keep the dialogue going until there is some type of resolution. But timing is critical as to when to make the hard sell vs the soft sell. Often an "art form" that can be mastered after learning from the rejections and failures. Remember - if you fail 7 out of 10 times in baseball you're in the hall of fame. In this business 9 out of 10 failures can be a nice monthly income if your average 20-40k per hit. : Keep trying and learn from your failures and repeat your successes. : Art 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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