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View Full Version : LARGE IMMEDIATE PROFIT on Sub2 Deal?


Jim FL
11-24-2004, 08:19 PM
Hello all,
Well, Dan has allowed me to post here and pass along some things I've picked up over the years buying and selling houses.
Yes, my main method of purchase is subject to the existing financing.
Why?
Because when you follow my advice, and buy right, no matter what method used, your exit is unlimited.
However, buying using someone elses money is even more fun and a BETTER return.

So, for those who think when you buy a property sub2, the only method for exit is a lease option....think again!

I'll link a pic below of a recent deal I closed.
Here's the scoop on it.
Looked at the house ONCE, met the sellers and signed an agreement on October 12th, at the property.
Closed the deal at a notary office on October 14th, and immediately listed the house RETAIL.
Set up a system where potential buyers went thru my mortgage broker, were pre-qualified, THEN given showing instructions. (a lock box, house was vacant.)
AFTER two people pre-qualified and looked at the house, the second one made an offer.
I closed the deal on November 22nd, just over a month after buying it.
For those wondering, "What about title seasoning?", well, we were prepared for that, and thusly sent our buyers loan package/application thru lenders that don't require seasoning of title.

Bottom line, closed and made a CASH PROFIT of :$31,269.27

Not bad for about 3 hours work.
I put ZERO cash into this deal, saw the house once, and sold it without seeing it again.
The buyers brought the lock box and sign to close, so I did not even have to get those myself.

Anyway, here is a link for an image of the HUD-1.
Perhaps this will give you some incentive to get out and make some deals yourself.
I'll be glad to help here and my forum for free, and of course, for more detailed info and guidance, check out my materials.

Here's the pic:
====>See the HUD-1 Here<==== (http://rementors.com/images/Course%20pics/a39InconnuHUD1.JPG)
If you are using MSIE, the image might be hard to read, so simply hold your mouse over it, and click on the zoom icon that appears to see it larger scale.

Happy investing to you,
Jim

P.S. This deal closed Monday, and we closed another one for just over $28k on Tuesday, with two more for right after the Holiday. All in all, its going to be a good Season for me, and it can be for you too.

Dan Auito
11-24-2004, 11:36 PM
You're making everyone Jealous over here Jimbo. The good news is that anyone who wants to duplicate your success can pick your brains right here! Thanks for being here Jim. :praise:

Market_St_Equities
11-25-2004, 03:31 PM
Jim, that is great! Congrats on the job well done. Quick question...how did you deal with the insurance issue, and also do you generally use a land trust? I think I will be acting as the trustee, listing the original seller as the beneficiary and then assigning the benficial interest to an LLC I create. What do you think?

Thanks Jim.

Brian

Jim FL
11-27-2004, 09:06 PM
Brian,
First, insurance is easy.
Cancell the old policy, and get a new one, naming the trust/trustee as the insured.
On this deal, I simply switched to a new policy, and then got back my money when I cancelled it the day of close.

I use trusts for just about everything.
the way you describe how you want to do it, sounds good to me.


Take care,
Jim FL

DionEvalueMortgage
12-08-2004, 10:21 PM
Man I dig this site! Mad props to Dan!

Anyway, this is a very popular stragey that only some investors and realtors are coming into seeing. Heck...I even come with my own ugly yellow sign!!!

(fyi - mortgage broker here)

oen19502005
12-31-2004, 11:54 PM
Please I am brand new to real estate and will like these kind of deals. Can you please give me your number so that I can talk to you about this. I need guidiance and I can even do some deals with you and share the profits.

My name is Okey and my phone number is 623-533-2345. I live in Phoenix, Arizona and the real estate market here is very hot. If you write and leave me your number, I can call you. Happy New Year.

Okey.

Aldo
01-01-2005, 06:33 AM
You apparently are not familiar with how this site works - no criticism, just a suggestion. Your post might have been better received if you had posted it as a new thread. Posting a new question under an existing threat may very well be over-looked by many.

You are blessed by being in what is probably the most landlord-friendly state in this great land. The downside is that landlords from other states mey not be able to offer the info you seek. My suggestion would be to find (and join) a local landlord's association. There, you will proably find more answers than you have questions. If the dues are, say, $100 and you get advice that saves you a mere $1,000, your dues have been effectively been paid for the next 10 years. To me, that doesn't sound like a bad deal.