Buying Preforeclosure Houses - Example preforeclosure deal"
"A preforeclosure deal must make sense for the homeowner and the investor..a win-win deal..its all in the numbers
$180,000 x 65%= $117,000 Next deduct repairs : (Square Ft) X (cost per square ft.)
Assume 1121 square ft x $20 per square ft = $ 22,420 Max offer to the homeowner: $117,000 -$22,420=$94,580 You must also pay off the loan and bring current any back payments.
Assume loan balance of $41,000 and homeowner is 6 months behind at $1300 per month.
it will take $48,800 to pay off the loan and reinstate the mortgage. So how much does the seller get at closing?
Max offer - loan payoff plus reinstatement = cash to seller
$94,500-$48,800=$45,700 So the cost to buy the property consists of:
$22,420.00 / repair
$48,800 / loan payoff and reinstatement
$45,700 / cash to the seller So, now the investor has aquired a property at a 35% discount ( $117,000) and can realistically sell it for $180,000. The homeowner gets a fresh start with 45K in his pocket. Win Win. No sherrif sale, no foreclosure. The homeowner keeps his dignity and minimizes financial ruin. Win Win. These deals are everywhere believe it or not..right in your town you just have to know how to find them.Learn to do contract assignments and flip preforeclosures and abandoned properties the correct way. You wont need any of your own money. Find and Assign for Profit, the sales page has tons of real information describing EXACTLY what you will learn, and the steps involved. Also this course has all the legal docs you'll need to protect yourself, and make your contracts binding.
Buying Preforeclosure Houses - Example preforeclosure deal
To make money in a preforeclosure deal you need to find homes with "equity". The more the better. Equity in this case is the difference between the existing loan amount and the after market value ( after repair ). To make the deal work..2 basic things have to happen...the homeowner receives cash at closing and the investor buys the house at at least a 35% discount..hence locking in a profit when he BUYS the home from the homeowner. Here's the basic formula: Market Value x 65%=Max purchase price (total the investor will pay)$180,000 x 65%= $117,000 Next deduct repairs : (Square Ft) X (cost per square ft.)
Assume 1121 square ft x $20 per square ft = $ 22,420 Max offer to the homeowner: $117,000 -$22,420=$94,580 You must also pay off the loan and bring current any back payments.
Assume loan balance of $41,000 and homeowner is 6 months behind at $1300 per month.
it will take $48,800 to pay off the loan and reinstate the mortgage. So how much does the seller get at closing?
Max offer - loan payoff plus reinstatement = cash to seller
$94,500-$48,800=$45,700 So the cost to buy the property consists of:
$22,420.00 / repair
$48,800 / loan payoff and reinstatement
$45,700 / cash to the seller So, now the investor has aquired a property at a 35% discount ( $117,000) and can realistically sell it for $180,000. The homeowner gets a fresh start with 45K in his pocket. Win Win. No sherrif sale, no foreclosure. The homeowner keeps his dignity and minimizes financial ruin. Win Win. These deals are everywhere believe it or not..right in your town you just have to know how to find them.Learn to do contract assignments and flip preforeclosures and abandoned properties the correct way. You wont need any of your own money. Find and Assign for Profit, the sales page has tons of real information describing EXACTLY what you will learn, and the steps involved. Also this course has all the legal docs you'll need to protect yourself, and make your contracts binding.