Use Orlando Judgments to Earn Money For Pennies on the Dollar
http://www.orlandoforeclosureseminars.com Orlando Judgments training teaches you how to make money in our free 3 day seminar. Register now and bring up to 2 friends!
Orlando Foreclosure Seminar Free 3 Day Event
http://www.orlandoforeclosureseminars.com Orlando Foreclosure seminar free 3 day event being put on by Mike Warren. This no nonsense seminar will teach you how to start earning money right away.
Mike Talks Orlando Short Sales and Third Party Short Sales
http://www.orlandoforeclosureseminars.com Mike is teaching Orlando Short Sales and third party short sales in his free 3 day event in Orlando Florida.
Using Orlando Loan Modifications You Can Help Home Owners
http://www.orlandoforeclosureseminars.com Orlando Loan Modifications are a great way to help home owners stay in their home and get paid for helping people from home.
Orlando REO is a Great Way to Buy Properties Cheap
http://www.orlandoforeclosureseminars.com Orlando REO is a great way to buy properties for pennies on the dollar. I am throwing a 3 day seminar in Orlando FL teaching all about Orlando REO.
Orlando Foreclosure Seminar Teaches Investors Smart Business Sense In a Down Economy
Mike Warren, a successful real estate investor, will present a 3-Day Multiple Income Streams seminar covering short sales, judgment recovery, loan modification and bank REO in Orlando in May. This will take place in Orlando, FL, on May 13-15, 2009.
FOR IMMEDIATE RELEASE
PRLog (Press Release) – Apr 15, 2009 – MISUniversity.com founder and CEO, Mike Warren, will offer his highly acclaimed seminar, ” Multiple Income Streams Bootcamp,” in Orlando, Florida, on May 13-15, 2009. The Orlando event will take place at the Four Points Sheraton Studio City, 5905 International Drive, Orlando, Florida 32819.
Mr. Warren created the training to teach real estate and legal professionals, as well as private investors, how to increase their knowledge of the pre-foreclosure, short sale and loan modification process and find a method for building wealth through foreclosures and real estate. In the last several years, real estate short sale trainers have charged thousands of dollars for training that was often times lacking detail. For the first time they are offering all 3 days of hands-on training at no charge.
Mike Warren was quoted as saying, “Multiple Income Streams Bootcamp teaches participants how to profit from foreclosures short sales judgment recovery, and loan modification strategies”. “As the buyer who comes to the rescue, a savvy investor is able to acquire property at below market value and sell at a profit even in a down market”, said Warren.
The current market for short sales and bank owned property is particularly lucrative. According to the Mortgage Bankers Association of America almost 3,000,000 homes will go into foreclosure in 2009.
3-day Multiple Income Streams Bootcamp is a full 3 day comprehensive training program that delivers the nuts and bolts details of how to negotiate and execute short sales, loan modifications and judgment recovery to real estate investors and professionals at all experience levels.
According to Pamela Day, a real estate investor in Tampa, FL, the bootcamp is one of the most content rich and effective she has attended. “Unlike so many seminars that give you a lot of hype without a step-by-step plan Mike’s talk is totally understandable from beginning to end,” said Day. “He makes you feel you are ready to walk out of the training and get started.”
The seminar is especially popular with real estate agents and mortgage brokers who find it identifies opportunities to earn commissions from transactions that would not be possible without short sales or loan modifications.
Registration for the seminars is at 7:30am. The class runs from 8:00am until 6:00pm. The cost is $3995.00 at the door. By registering online at http://www.OrlandoForeclosureSeminars.com attendees can get in for free.
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MISUniversity.com is the world’s largest internet based training company offering short sale training Orlando foreclosure training bank reo training judgment recovery training loan modification training bank owned property training. Training participants can visit http://www.OrlandoForeclosureSeminars.com to shop compare and register for more than 15 training seminars.
Orlando Short Sales – Techniques For Profiting From a Bad Housing Market
There are many real estate investor trainers that teach the power of short sales. With record foreclosures expected to continue, it pays to learn how to do them. However, what many of these trainers are not telling you is how to actually get paid on these short sales if you aren’t the one buying the property.
One of the most common approaches that many investing gurus teach is the utilization of an assignable contract. With this strategy, you create a contract between you and the homeowner where the homeowner agrees to sell the property to you. Once you get the bank to agree to go through with the short sale for a set price, you sell the contract to an investor for a set price. The investor assumes your position on the contract and goes ahead and closes on the property.
By selling your position on the contract, this allows you to get paid for your work in locating the motivated seller and finding the investor without having to buy the property yourself. The benefit to this is enormous as with this approach you don’t have to come up with any money to close on the property. This allows even a beginner with no money to invest a little sweat equity and make money in real estate without having any money or good credit.
While this strategy sounds good in theory and works in many situations, there are some situations where this strategy doesn’t work. Unfortunately if you review most real estate courses that advocate this strategy, what they don’t share with you are the scenarios in which this strategy doesn’t work. What they also don’t share with you is what you should do alternatively if you find yourself in these scenarios so that you can still get paid without having to close on the deal or come up with any money for the property yourself.
If you are dealing with an investor that is purchasing the property all cash, you should be fine with utilizing the assignment of contract strategy. The bank that is holding the mortgage typically doesn’t care who pays them the money. All they care about is that they find someone who is willing to pay them the amount that they agreed to take.
What the bank doesn’t want is to find themselves in a situation where they have to foreclose upon the property. This is why they are willing to entertain a short sale to begin with. By working with an investor who is willing to purchase the property at a discount, the bank avoids having to foreclose upon the property.
Here’s where the problem occurs. What happens if you are dealing with a buyer that is NOT purchasing the property all cash? This is very important, especially when you are working in high priced real estate markets like California and New York. Most of the potential buyers that you will find for your short sales will not be able to buy the property all cash.
Why can’t the buyer simply purchase the contract from you like the cash buyers? One reason is because the buyer simply may not have the cash necessary to buy the contract from you to compensate you for the property. With tougher loan requirements, many buyers are finding themselves required to come up with higher down payments to get approved for financing. To come up with these down payments and cash to compensate you may not work.
The other problem is that many lending institutions don’t want to lend money to assignable contracts. What they want to see is a straight contract between party A and party B. They don’t want to see a contract between Party A and Party B and then Party B and Party C. Therefore you have to know how to get around this.
So if you cannot do an assignable contract, how do you get around this? There are several approaches that you can take to get paid on your short sales without having to necessarily use the assignable contract option. The challenge is you need to be aware of each approach because all parties involved may not feel comfortable with your preferred method or approach.
The first approach is to simply find an attorney who is familiar with these types of transactions and can simply “work something out.” While this can work in some cases, this approach can be very difficult to implement. Most real estate attorneys are very conservative and have no interest in trying to “work something out” with a creative financing deal. Therefore, you might find it extremely difficult to find an attorney who is willing to do this.
You are also dealing with a very grey area here when it comes down to real estate law and what is considered appropriate practices for an attorney. As such, this may not be an area that most attorneys want to go anywhere near as one mistake can cost them their license to practice law forever.
The other problem with this approach is that because there are so few attorneys who are willing to just “work something out” you will likely find yourself restricted to a single attorney that you have to do all your deals with. If that attorney goes on vacation, charges too much or you simply aren’t happy with that attorney, you may have little choice but to deal with it.
The second approach is to do what is called a double closing. With this approach, what you do is you complete a closing between your investor and yourself. You then use the investor’s funds to complete a closing between you and the homeowner and the bank. Like the “work something out” scenario, this is also a very grey area in real estate and has many of the challenges with that scenario as well.
The other problem with a double closing is that most attorneys and title companies are going to charge you as much as double closing fees to perform this type of transaction. These additional fees eat into the profits that are available to you and can potentially cut into your overall profits if your end buyer isn’t willing to pay the additional amount for the property.
A third approach is to set up a trust. While I’m not an attorney and certainly don’t understand all of the legal ramifications behind setting up a trust, what I do know is that a land trust makes it a lot easier for attorneys to make sure you get paid without treading all of the thin lines that are legally associated with them just “working something out” or doing a double closing.
The major downside to a trust of course is that there is a fee to set one up. This increases your legal fees. However, the fees associated with a trust are typically much less than the fees associated with doing double closings, so it’s a much less expensive alternative.
The easiest and best approach, in my opinion is to simply add yourself to the HUD as someone providing services that needs to be compensated at closing. The HUD is the document that tells the person writing the checks who is to get paid and how much. By adding yourself to the HUD and adding your fee, this makes it simple and easy for you to get paid.
There are some cases where the attorney writing the check might question why you need to get paid. Simply explain your role in the transaction. If there is a problem with that, you will have to use one of the other methods of getting paid, but keep in mind they have other risks associated with them as well.
Purchase Orlando REO Properties For Pennies on the Dollar
Over the last year or so there is a real estate investment strategy that has been gaining popularity. While you may have heard of purchasing REO properties from the bank, the current state of the market has given birth to a new way to obtain real estate investment properties at a significant discount. This strategy is known as bulk reo real estate.
REO stands for “Real Estate Owned” and it refers to a real estate property that was previously a security for a mortgage loan. The previous owner defaulted on the loan and the lending institution foreclosed on the owner and took over ownership of the property.
REOs are a problem for lending institutions. These institutions are not in the business of investing in real estate. They are in the business of loaning out money. When a property in their portfolio reaches REO status, the institution is losing money every day that this property remains under their ownership. Their goal is to get the property off their books as quickly as possible so they can go back to doing what they do best and that is lending out money to people. Banks also get audited once a year and if they have too many properties with REO status, the management team of the bank gets in trouble.
Normally when the bank takes the property back at auction, someone that works in the bank would either buy the property themselves or they would hire a real estate agency to list the property for them. The real estate agency will list the property at full market value, unless of course the property needs a lot of work. If the property needs work, the agency would discount the price accordingly to compensate for the work that is required to complete the work on the property. As such, the only way you can purchase REO properties at a discount is if you either have an inside contact at the bank itself or if you purchase from a real estate agency a property that needs work.
However, because of foreclosures being at an all time high, many institutions are finding that the current system of handling REOs is not working. They have too many properties that are being foreclosed upon and with a slow market, the real estate agencies cannot move these properties fast enough. As a result, the properties continue to sit on the market and the lending institution continues to lose money on these properties.
As a result, the lending institutions have come up with a new way to get rid of their excess inventory and that is through a process called bulk reo packages.
A bulk REO package is a group of properties that have been combined together and marketed as one package. The package may consist of actual real estate properties of all types and sizes, non performing loans for sale or a combination of both. The packages are usually grouped by geographical location, but can also be grouped by property type nationwide. The financial institution calculates how much each property is worth in the open market and then applies a discount, typically at 50 to 70 cents on the dollar.
There are two ways you can make money with bulk REO packages. The first way is if you purchase them yourself or put together a team of real estate investors to purchase them. REO packages typically start at $5 million and can be as high as $1 billion dollars. These deals can be purchased from the lending institution directly or a third party who is responsible for finding buyers. This individual is known as the sellers mandate.
If you have access to the type of money required to purchase a REO package, you can make a significant amount of money. The properties in the portfolio are going to be in a variety of different prices and conditions. Some of them you will be able to sell right away on the open market. Others will require work to be done before they can be sold. The discounts on each property may be small or very large.
Suppose you purchase a REO package for 5 million dollars. The package consists of 50 properties at $100,000 each that are worth $200,000 once fixed up and sold. Each property on average costs $20,000 to repair. There are several ways you can make money with this package.
You can immediately wholesale the 50 packages to investors at a profit. If you sell each house for $120,000, you are still leaving at least $60,000 profit for the investor that is buying the property from you. After selling all 50 properties you will walk away with over $1,000,000 profit.
You can fix up the properties and sell them yourself on the open market. If you invest $20,000 into each property for repairs, you stand to make up to $80,000 profit per house. After selling all 50 properties you will walk with over $4,000,000 profit.
Another option is to fix up the properties and keep them yourself. You can rent each property out to tenants and collect rent. Assuming each property is a single family unit and you can produce a positive cash flow of at least $200 a month, you can net a positive cash flow of $10,000 a month. This is of course assuming that the money that you invested into acquiring the properties was borrowed money. If you paid all cash for the properties and repairs, your cash flow could be as high as $100,000 a month.
You can also create lease options on the property and rent the properties to tenants with the option to buy at a later date. A lease option is a great strategy to employ in this current market as there are a lot of people out there that want to buy a house but can’t afford the down payment. The tenant pays you an option consideration at whatever price you decide. Should they later buy the house, the option consideration can be used as part of their down payment. However if they fail to buy the house, you get to keep the option consideration and lease the property to someone else.
What if you don’t have access to the large amounts of capital necessary to purchase bulk REO real estate? There is still another way that you can participate and profit from bulk REO packages. Sellers mandates are constantly looking for new buyers that they can sell their properties to. If you can find people who are interested in purchasing bulk REO packages and you can introduce them to the sellers mandate you can earn a commission not just on the initial package but any future packages the buyer purchases from the sellers mandate.
How much money is possible for helping to close a REO transaction?
Typically the financial institution will pay 3 points, which equals 3% of the final sales price for the package. Half of that commission will go to the sellers mandate and the other half will go to the people on the buyers side. If you are direct to the client, you keep the full half of the commission for yourself. If not, you will have to split your half with whoever else is on the buyers side of the transaction.
Suppose you find a sellers mandate for an REO package and you are able to refer a buyer directly. The REO package is worth 10 million. 3% of 10 million is $300,000. You would split the $300,000 in half, so you would walk away with $150,000 just for making the referral!
If you are dealing with a larger package, the commissions become even more lucrative. A 50 million dollar package with the same scenario would net you a commission of $750,000!
If you are going to get into the bulk REO game, now is the time to take action! These bulk REO deals are only going to be available for as long as foreclosures continue to remain a huge problem right now. Once the bubble ends and the inventory goes back to normal levels, lending institutions will go back to the normal way of handling REOs and there will no longer be an opportunity.
Leverage Orlando Loan Modifications to Get Homes For Pennies on the Dollar
As some of you know I like to buy defaulted mortgages when affiliates find deals they don’t know what to do with. Well I just had a fax come across my desk from an affiliate who participates in our Mastermind Coaching program. As part of this program we talk about all different ways of making money from bad debts. A defaulted mortgage is a bad debt. Most people think of a defaulted mortgage as a foreclosure. It all means essentially the same thing.
In this case we have a seller carry back mortgage on a 2 bedroom 2 bath house in San Antonio, Texas. The sale price of the property was $78,000 with $2,000 down by the buyer when they purchased the property. The seller of the house decided to act like the bank and take back a mortgage so that they could get monthly payments. What often happens in cases like these is that the seller of the house sooner or later needs a lump some of cash instead of monthly payments. They may need the money to pay bills, buy a car, travel or even for the purchase of a new property. Either way the seller of the property (note owner) needs cash and is often willing to sell their note at a discount. We are in the negotiating phase with the note owner to buy their note for $18,000.
Wait a minute you might say! Why would someone sell their $76,000 note for just $18,000? The answer is pretty simple. This note is in default. In other words the current owner of the house (person making the payments) is behind in their mortgage by 8 months. Their monthly payment is $647.47. Multiplied times 8 months and they owe a minimum of $5,179.76 in back payments not included late fees.
The note owner does not know how to foreclose or have the money to pay an attorney to handle the foreclosure. They have been living off the monthly payments, but now they have had no income for the past 8 months. The note owner is now late on their bills because they do not have the income they were promised when they sold their property.
So let me jump to the end and tell you the plan.
When I (or you) buy the paper (mortgage) on a property I do not need to do a short sale, yet I can make as much money or more as someone who does a short sale. (I will cover this topic at my live 3-Day Foreclosure and Bad Debt Academy.)
Here is what happens. We will complete the purchase of the note for $18,000. We will then contact the homeowner (actually we will get this part done even before we complete the purchase) and offer our own forbearance agreement. Meaning we will not foreclose on the property. As part of the forbearance agreement we will get a Deed in Lieu of Foreclosure placed in escrow. It must go in escrow because we do not own the mortgage yet. We will agree with the homeowner that if they sign the Deed in Lieu of foreclosure to the house we will not foreclose (remember we are buying the note and we will end up being the bank). The homeowner agrees to move from the property and we agree to keep the foreclosure from appearing on their credit report. We can even give them cash to help them move if they need it (again we are the bank; we are not doing a short sale).
When we complete the purchase for the $18,000 we transfer the Deed that was held in escrow and now we own a $78,000 house (value in 2004) for just $18,000. We can turn around and rent the property out, flip to an investor, or sell it a full value to an end buyer. We have a $60,000 profit from knowing how to shuffle paper.
In this deal we combined two techniques. We used our own forbearance agreement with buying a note from the bank (note owner).
Howto Buy Orlando Judgments For Just Ten Cents on the Dollar
Would you like a way to be able to create a significant income stream with part time effort from real estate and not have to invest a significant amount of time, energy or money to do so? If you would, one area that you absolutely want to consider is ‘judgment options.’
To understand what judgment options are, you must first understand the judgment process. When you understand how this process works, not only will you see the income opportunity but in particular, you will understand why it’s such a powerful prospect during this current economic downturn.
In any economy, you have people that don’t pay their bills or meet their financial obligations for a wide variety of reasons. Some of them may have lost a job or fallen into tough times. Others are simply deadbeats and have no intention on paying their obligations.
When someone (the debtor) fails to meet their financial obligation, the person they owe money to can take them to court. If the court rules in their favor and determines that the debtor owes the money, a judgment is filed against the debtor.
So what is a judgment? It is simply a legal document stating that the debtor owes such person (that owns the debt) the money; it authorizes such person to take necessary action to collect the debt as allowed by law.
However, when you win a judgment, it does not mean the debtor will suddenly pay you the debt. You still may have to take additional steps to collect the money that is due you.
If the debtor owns property, one step you can take to collect the debt is to file what is called a ‘lien against the property.’ A lien is a hold against the property in question and states a person cannot sell or refinance the property without the lien holder being paid first on their debt.
When you take a judgment and file a lien against the property, it becomes known as a ‘judgment lien.’ This is an excellent way to ensure that you get paid the amount you are owed because you now tie the debt to a secured asset that has value.
With a judgment lien, you have a claim against the property without having ownership of it and without having to foreclose on it.
Most problems judgment holders have is that they don’t know how to collect on the judgment. They are inexperienced in collections and have no idea of the laws under the Fair Debt and Collection Act. Additionally, legal advice is expensive and they may not be willing or able to hire an attorney to get the advice they need. As such, there are many judgment holders willing to sell their judgments for pennies on the dollar. They understand that it’s better to get some of their money returned rather than to receive nothing at all.
If you have the money to spend, most certainly buy judgments for yourself! It can be a very worthwhile investment and one in which you can make a significant return on your money.
As an example, suppose you find a judgment for $10,000. You negotiate to purchase that judgment for $1,000. By doing a little research, you discover that the debtor owns a house. You take that judgment and file a lien against the house. 6 months later, the debtor refinances the house. Out of their proceeds from refinancing, the lien will be paid first before they receive any money from the refinancing. You’ll receive your $10,000, thus making $9,000 in profit from the $1,000 investment.