Posted by phil fernandez on January 08, 2001 at 09:41:43:
Of course I needed the owner of the property to cooperate on the deal as the owner’s redemption period was still in effect and the bank didn’t actually own the property at that point.
Examples of Real Life Real Estate Deals - Posted by Jeffrey
Posted by Jeffrey on January 06, 2001 at 21:06:56:
Can someone give me real life examples of no money down or close to it real estate deals?
You’ll find Many at this link : - Posted by Terry Vaughan
Posted by Terry Vaughan on January 06, 2001 at 23:14:17:
Jeffery:
There are many deals like you discribe at the link below:
Re: Check out these - Posted by Mike
Posted by Mike on January 06, 2001 at 22:00:42:
Brian Renfrow seems to be doing quite well.
Re: Examples of Real Life Real Estate Deals - Posted by phil fernandez
Posted by phil fernandez on January 06, 2001 at 21:30:59:
Jeff,
I’ll give you a quick one and it’s very vanilla.
Bought an 8 plex back in 1994 for $275,000. Got the seller to take back a 1st at 8% fixed for 20 years in the amount of $255,000. Got a loan from the family for the other $20,000 at 5% interest amortized over 5 years. $255,000 + $20,000 = $275,000. No money down.
Last summer bought a foreclosure from the bank. Well it was in foreclosure, but the bank did not have possesion at the time. Still in the redemption period. Worked adeal with the bank that I would buy it for $43,000 if the bank gave me a loan for the $43,000. They did at 8.25% fixed for 30 years. Bought the house for $43,000. A no money deal.
Bought a duplex last year for $52,500. Bought it with a partner. I came up with my half of $26,250 from my equity line of credit. Again a nothing down deal.
I could go on but you get the idea. These types of deals are not only available, they are consumated every day. Stick around this site and find out how they are done. Or better yet go to the convention in Atlanta.
Question for Phil - Posted by Chad
Posted by Chad on January 07, 2001 at 19:34:15:
Phil-
In one of your examples, you gave that you bought a property from the bank that was not yet forclosed on? How did you do that?
I called the bank on a property that had not yet been forclosed on, and all the bank could tell me is that yes, the held the mortgage to the property, but could give me no other information.
Any idea’s for me?
Thanks!
Re: Question for Phil - Posted by phil fernandez
Posted by phil fernandez on January 08, 2001 at 07:31:39:
Chad,
What I did on that particular deal was as I was down the courthouse I spotted the foreclosure file as I was doing my routine research on all of the foreclosuers. When I look at a file I check on the location, which mortgagee is foreclosing and most importantly to see if there is enough equity in the deal.
The FMV of the property was about $70,000. The mortgage balance was $43,000 and with back payments and interest and penalties the balance owed the bank was about $51,000. I went to the local bank and offered them initially $35,000 and they could stop the foreclosure. They countered back at $43,000 and waived the $8,000 of back payments. Told them I would accept their counter if they would finance me for the entire $43,000 purchase price and they said they would.
The way I got the bank to finance me 100% on a deal that was still in the foreclosure process were threefold. One, I had established a track record with that bank by having other mortgages with them and by consistently buying some of their foreclosures. So the bank knew they could depend on me to come through.
Two, it was a small local bank. The bankers knew me. A big out of state bank would have been much tougher.
Three, I could show the bank the advantages to them by cooperating with me : They could stop the foreclosure and not lose any more money, they could wipe this liability off their books and replace it with a preforming loan to me , an asset to them.
The key is to start now to get to know the guy at the bank that handles REO’s and foreclosures and show him how you can solve his problems. It might take some time, but its well worth it in the long run. I’ve even had this banker accept my lower offers than someone elses because he knew I’d close.