[Online & Offline Marketing] How I made $35,000 from a Foreclosure | Step By Step

[MaskedMarketer]

Originally Posted by Gary Huynh

On another topic, if someone offered me to help me find owed money from the government for a 25% cut, I'd say thank you for letting me know. Then I'd contact a lawyer and pay him much less to show me how to get that money.

2 problems with that.

#1 you wouldnt know where the money was coming from. You wouldnt even know it was government money. Why would I tell you where the money was coming from, if I don't have to. What makes you think you'll find the money if you had no idea about it before?

#2 for the same service- lawyers have been known to charge even more. Taking up 50% of your money.

Of course its possible, but everyone is looking to take a cut of your money and won't be willing to do it for a nice profit.

Many smart people just take 75% of what they are owed because they don't want to do all the leg work instead of someone getting them the money for them in "x" amount of time.

If you don't get the money in a certain amount of time, it is no longer your money.

[Chris_L]

Originally Posted by cashcorpinc

Another strategy-

1) Find ANY seller with equity who wants to sell. (Doesn't have to be extremely motivated)
2) Negotiate a low but believabe price. As low as you and your consience will allow.
3) Option to Purchase the property for your low negotiated price.
4) Market the property and sell it for more than step 3.
5) Collect the difference at closing for your interest in the property.

That's what I do, and that's what I teach. I teach my clients how to sell properties in 7 days, and then how to capitalize on that skill by Optioning and selling properties without ever owning them.

We're all marketers- this just cuts out all the garbage of "dealing with" the properties.

I've done about 120 deals just like this- biggest check was $124,000. All the benefits of real estate investing but without- tenants, rehabs, financing of any kind, borrowing money, cleaning, landscaping, etc.

cashcorpinc, I like your strategy. It seems like a win/win situation for both parties. Regarding step 4, what if you market the hell out of it but still can't sell it for more than step 3. Are you obligated to purchase the property? If that's the case, then you would need a lot of cash on hand to make this deal, right? I would imagine it'll be very difficult to get a mortgage loan these days.

Regarding step 5, did the seller ever get angry with you because you were able to sell the property at a higher price and made a substantial profit out of it - like your biggest check of $124,000? If he sees that you are walking away with a $124,000 profit, he might sue you trying to get some of it back.

Sorry if the questions are too hypothetical. I'm just asking from a layman point of view.

[MaskedMarketer]

Hey Chris,

I'm not sure how he does it...

But when you just control a property with a contract then you don't even have to own the property to profit. People right now really want to sell there home and you can profit with out ever owning it.

If you have it under contract to sell then you stand to make a profit. You might consider it "flipping contracts". I think some might refer to it as wholesaling? If you ever saw the "We Buy Homes" signs- those guys are doing wholesaling.

[Handsome J]

Greenovni,

Great stuff here, I do enjoy hearing these kind of opportunities being talked about on open forum. Your approach is great, but my concern would be public record filings of foreclosure which can appear on a credit record (bankruptcies appear all the time). I would try doing this through a trust to shield your name as far as ownership. At least this way if a search is done, the name of the trust appears as foreclosed and not your name, social security or not. Name searches on public record may become an issue on title searches with prospective properties & create issues at closings, I would consult a real estate attorney to be sure.

There are many techniques in Creative Real Estate Investing to take advantage of especially in this market. I personally am an REO Broker for several large lenders here in NJ & unlike many I service 40+ listings statewide in all Counties here. I also have a team of guys currently working 30+ short sales at any given time. To say I see alot in the Real Estate Industry is an understatement. Being on both sides of the transaction, both pre and post foreclosure allows me to interact with a great many people (the scammers, the investors, the real deal makers, & the lending institutions various departmental employees). I have several proprietary ideas I have been working on with regard to a WSO, but I wanted to guage interest before launching. It will consist of a DVD video where I host a Live Event in front of an audience of 550+ students on the following subjects:

- Creating Equity Positions On Upside Down Properties Through Short Selling
**Using Negotiating Skills To Discount Debt And Re-Create Equity For Profit**

- Creating Delays/Dismissals On Foreclosure Actions Using Pro-Se Legal Filings
**Put The Bank On The Defensive & Obtain Delays Or Free & Clear Profits**

- Leveraged Buyouts Of Non Performing Liens Yield Six Figure Income Results
**Profit Using A Hybrid Of Note Buying Mortgage Assignments/Short Sales**

The 3 Live Event DVDs are accompanied by 3 Instructional CDs Containing Course Materials & Templates for all of the Subjects Outlined. Also Included With The 3 Live Event DVDs & 3 Instructional Cds are 2 Case Study CDs Showing The Application of these ideas into real world situations which prove their merit with Substantial Returns & Repeatable Results. I wanted to make an Initial Production Run Of 100 Courses to gauge the interest. I figured getting the over 550 people in NJ was no big deal, but as a newer Internet Marketer, I am unsure how to gauge demand for such a product. I wanted to market at $495 for the package upon launch, but also do a limited WSO offer of 100 courses at $295. Would anyone here be interested? Send me a PM if you are. If I get 10 PMs, I will have a WSO up in a week.

I know times are tough for many in Real Estate, Wall Street, Banking, & other various sectors. I try to take that fear away and show hope. Times like these (as cliche' as it sounds) come once in a lifetime (name a time you have seen the government bailout to the tune of 1 Trillion Dollars +). I replace fear with Giddy Excitement. Many dont realize that opportunity is knocking at this very moment, and if you are smart enough to let it in, you stand to create Not Just Regular Wealth Through Real Estate, but Generational Wealth that can be passed down your family line if you bring your A-Game to the table.

[Chris_L]

Originally Posted by cashcorpinc

Another strategy-

1) Find ANY seller with equity who wants to sell. (Doesn't have to be extremely motivated)
2) Negotiate a low but believabe price. As low as you and your consience will allow.
3) Option to Purchase the property for your low negotiated price.
4) Market the property and sell it for more than step 3.
5) Collect the difference at closing for your interest in the property.

That's what I do, and that's what I teach. I teach my clients how to sell properties in 7 days, and then how to capitalize on that skill by Optioning and selling properties without ever owning them.

We're all marketers- this just cuts out all the garbage of "dealing with" the properties.

I've done about 120 deals just like this- biggest check was $124,000. All the benefits of real estate investing but without- tenants, rehabs, financing of any kind, borrowing money, cleaning, landscaping, etc.

Originally Posted by Chris_L

cashcorpinc, I like your strategy. It seems like a win/win situation for both parties. Regarding step 4, what if you market the hell out of it but still can't sell it for more than step 3. Are you obligated to purchase the property? If that's the case, then you would need a lot of cash on hand to make this deal, right? I would imagine it'll be very difficult to get a mortgage loan these days.

Regarding step 5, did the seller ever get angry with you because you were able to sell the property at a higher price and made a substantial profit out of it - like your biggest check of $124,000? If he sees that you are walking away with a $124,000 profit, he might sue you trying to get some of it back.

Sorry if the questions are too hypothetical. I'm just asking from a layman point of view.

Originally Posted by MaskedMarketer

Hey Chris,

I'm not sure how he does it...

But when you just control a property with a contract then you don't even have to own the property to profit. People right now really want to sell there home and you can profit with out ever owning it.

If you have it under contract to sell then you stand to make a profit. You might consider it "flipping contracts". I think some might refer to it as wholesaling? If you ever saw the "We Buy Homes" signs- those guys are doing wholesaling.

Interesting...so you are not obligated to purchase the property.

I wonder if it is possible to approach banks with this strategy.

1) Secure an "Option to Purchase" contract for their foreclosed properties.
2) Market the hell out of it.
3) If it doesn't sell then you don't lose anything except your time and a small marketing expense.

[Handsome J]

Originally Posted by Chris_L

Interesting...so you are not obligated to purchase the property.

I wonder if it is possible to approach banks with this strategy.

1) Secure an "Option to Purchase" contract for their foreclosed properties.
2) Market the hell out of it.
3) If it doesn't sell then you don't lose anything except your time and a small marketing expense.

Thats basically a short sale outline, but replace the "Option to Purchase" contract with a "Power of Attorney". Using an option contract 9x outta 10x wont fly with the bank. If they see the option, they know there is profit spread for you and will almost never go for it.

[greenovni]

I started putting the new ads on CL about boarding up foreclosed houses and have a few hits. Lets see what this week brings

[Dick Doe]

Thanks for the great post. I enjoyed it

[greenovni]

You're very welcomed.

I just opened the mail to ... nothing

Tomorrow is another day I guess...

[greenovni]

For those of you following this thread.

The new owner of the property just contacted me and offered me $500 for a quit claim deed so he could remove any clouds from the title.

Any of you have any pros or cons about signing a quit claim deed to him?

[foxtrot3]

Clouds on the title? What clouds? You went through the normal closing process, right? Title insurance was issued, right? Did it reveal any unresolved title issues? The answer has to be no, because if there had been title issues, the policy wouldn't have been issued, and the sale wouldn't have closed.

I don't understand the need for a quit claim deed.

[greenovni]

foxtrot3 You must read the first post before answering. There is no normal closing process on a tax deed auction

[cashcorpinc]

Hi Chris_L-

With an Option to Purchase, you're never required to buy the house, you just have the option to.

We use $10 or $100 deposits (if we want to do it tax free in a Roth IRA we have to use $100- IRS rules), and you would lose ad $$'s + that $10 or $100.

The reason this works (I know it works right now because this is what I do for a living) is because of my sales system.

I am "The 7 Day Sale" Guy in real estate- and we sell houses for 90%+ of market value in 7 days, even in this market. We don't do any special financing or leasing of any kind so these deals are all cash profits, no paper or payments.

It's the marketing system that I've copywrited that makes it work and has made me pseudo-famous in certain investing circles.

Once I learned how to sell a house very weekend, i then systemized it and hired two sales teams. Then i had to figure out how to BUY two houses every week, so i started mastering the Option to Purchase!

Check it out on my Blog: JasonLoucks.com

You'll want to check out the stuff that says, "7 day sale"- not foreclosures or the real estate profit machine. Those two are great, but not really for beginners!

[cashcorpinc]

Sorry- i got a little click happy and hit enter before I realized never even answered the 2nd half of your question!

Since you've got an Interest in the property, if a Seller gives you grief, you can keep them from having clear title, making it impossible to sell the house to anyone who needs a mortgage (i.e., regular people- they could still sign a QC deed or something but then THAT owner would have bad title!)

The real truth is that screening out a-holes is 90% of the battle in real estate or any other business, and that applies here, but once you have the Option, the ball is in your court.

Truthfully I've only had a problem twice, and both times it was with a seller I knew was going to be a problem, but the $$'s clouded my judgment!

If you try to do this on REO's (already foreclosed on), it's tough because the banks want a big deposit, a cash contract and you won't have access to show and sell the house.

On PRE-foreclosures (before the bank owns them) it works great!

On short sales, you have to know what you're doing to close them, but it works extra-great (because of the lower payoff).

[Thomas Wilkinson]

Hi Green, Been waiting for you to report back on this
project. Glad it worked out. As per forclosures I went
to the Hillsbourgh County sale last week. They had 31
properties. 28 did not receive a single bid. They are now
bank REOs. The interesting thing was the three that did
sell. ALL were over mortgaged by significant amounts.
None received a bid for anywhere near the forclosure
amount. The average was about 50 cents on the dollar.
The banks EXCEPTED ALL THREE BIDS and let the houses
go. The banks seem deperate to get this stuff off their
books. Don't be afraid to low ball.

T.W.

[greenovni]

Thomas Wilkinson Yeah, mortgage foreclosures are receiving hardly any bids at all. The tax deed auctions are another story and I think might be a way to create wealth quickly.

I an now working on a campaign to see if I get other properties before the tax deed auctions.

I just saw a new place in Orlando that is selling their condos fully furnished including plasma tvs and complete sound systems.

[Bruce NewMedia]

Cashcorpinc: Sounds like you have a good system for this market. Ever heard of Jason Loucks?. He's in Florida and does something very similar. He sells a course on How-To's of a similar method

He Options the property at a lower price and then does a 7 day sale (round robin auction) to get his profit. No question now is the time to do these deals as there are a ton of opportunities.

EditPosted this and then refreshed the screen and lo and behold, it turns out you ARE Jason - ha!)

[greenovni]

Where can I find Jason's system?

[cashcorpinc]

Hi Greenovni-

Check out 7 Day Sale Guy for my system.

NOTE TO MODERATOR: I'm not sure how much promotion is allowed, so if this isn't cool, please modify or delete it- I'm not trying to screw with the system, just answer a question!

[Richard Tunnah]

Interesting thread guys. My other passion other than IM is Real Estate investing. Having studied many systems both sides of the pond it seems easier in the US than the UK due to the systems in place (ie foreclosure sales etc).

Rich

[greenovni]

Thank you cashcorpinc

Ritch, it seems to be pretty easy so far. I am about to try something new to see if I can capitalize on the bad economy.

[chrisnegro]

Hey Greenovni....we need to talk. PM me for details....I have something that may interesting you!

Cheers,

Chris Negro

[ibringjoy]

This is all so interesting! How do I find out if my state/county will give me the money for the profits from the tax auction? All this time I thought they just kept those profits after they took someone's house or property away, and thought how they must make a lot of money that way!

Kathryn

[tommygadget]

This was an interesting read. I could not profit on other people's misfortunes and be happy about it. Money is not everything. We should help people out because we can and worry about profit another day another way...

TomG.

[T.R. McCarroll]

Originally Posted by tommygadget

This was an interesting read. I could not profit on other people's misfortunes and be happy about it. Money is not everything. We should help people out because we can and worry about profit another day another way...

TomG.

Tommy,

Some will and some won't .. you are a good man if you can help others with your profits ... I know plenty of people that use their profits from real estate to help the community for the better cause

[greenovni]

chrisnegro I just noticed your post. PM on its way

ibringjoy Call your county's comptroller and ask them what they do with overbid monies I am pretty sure that they have to give it to the owner on record @ the time of auction

tommygadget People are just walking away from these foreclosure, not sure if it is lack of knowledge or that they are sick and tired of the situation.

[chrisnegro]

The only problem I see with this strategy...IS THE KICKER...IS THAT THEY HAD NO MORTGAGE ON THE PROPERTY AND COULDN'T PAY THE TAXES. The problem specifically I see is the slim chance of finding ANYONE with no mortgage on the property (#1) and (#2) if they did not have a mortgage on the property....the chances that these people can't pay their taxes are very slim to known.....only in extreme rare circumstances...would find a scenario like this....

However....I'm open to be teachable on this. Thoughts?

Sincerely,

Chris Negro

[greenovni]

chrisnegro You would be surprised at the stuff I've been able to find