Posted by ski on June 15, 2005 at 19:44:23:
Just bought, via a short sale, from an “investor” who thought he could make a ton of money on the buy-in. Basically, he bought houses above FMV. And got about 20k per deal. His appraiser would look at the property and give him an above FMV for each property. He bought 10 properties in 1 year. He made a really good payday at the closings. However, He coludn’t get enough rent t6o cover his payments. He lost every one of them. DUH. Read a book from someone who told him that this was the way to go. At any rate I bought his last foreclosure at a short sale. The property is worth about 25K. I bought it for 70K. He had to sign a promisory note for 20K before closing. Again, DUH. The lender couldn’t collect from him when he owned the property and now they expect to collect from him after the fact. Some lenders are complete SH***T heads.