You posted the statement below on a previous post, could you explain this process in more detail using a deal as an example?
“One last note, if you are ‘wholesaling’ properties for $20k - $50k which you will, you can collect some money on the front end and then put a 2nd Trust Deed on the property and get paid when they sell the property! This works great.”
Junkers:
You will come across deals that have a lot of equity in them. What you will find is that not everyone is in the position to give you $20k-$100k for a ‘wholesale’ deal. In this case, I try to get as much money out of my ‘wholesale buyers’ as I can and then have my escrow draw up a 2nd Trust Deed. I record this after ‘assignment’ and get paid on the back-end. It works out very well this way. Also, you can get paid more because you are getting paid when they sell it.
Example. Purchase price: $300k
Retail Value: $500k
Wholesale Fee $100k
I will collect $10k upfront from my ‘wholesale buyer’. Then I will have my escrow company draw up a 2nd Trust Deed for $90k and my ‘wholesale buyer’ sign. I then ‘assign’ my escrow. After the deal funds, I record my 2nd Trust Deed.
At closing in 4-6 month’s I get paid directly thru escrow!
They key in this business is being a transaction engineer as well as a Creative Real Estate Investor…
I learned a lot of my techniques by being in the business for over 10 years and doing over 300 deals. Also by having an excellent mentor when I started out. Did you ever wonder why even Tiger Woods has a coach?
I would recommend you attend as many seminars, bootcamps and read as many books and tapes by credible real estate Guru’s that are out there. The credible one’s I endorse are:
Ron Legrand, Robyn Thompson, David Lindahl, John “Cash” Locke, Mark Sumpter and Steve Cook…
Best Riches,
Jeff Adam
Jeff,
Could you also give an example of your 100% finance on a wholesale deal?
Junkers:
Here you go-
I tie up a house worth $100k for $50k. I contact my private lender and arrange financing for $60k plus closing cost. I wholesale the property to my ‘wholesale buyer’ for $60k with a wholesale fee of $10k. I ‘assign’ my escrow to my ‘wholesale buyer’ with 100% financing in place. I get paid my $10k thru escrow at closing.
My private lender is doing a 100% financed loan of $60k plus all closing cost. My ‘wholesale’ buyer does not have to come up with any money as my private lender is doing 100% financing on the deal and I am getting paid my fee thru escrow at closing.
I am flying out of town today to rehab a 47 apartment building so I will not be able to answer anymore of your questions…
Best Regards,
Jeff Adam