Austin, TX 440K with 25K Decorating Allowance + 12 mos. Leaseback!!

[ksjg046]

Pre-Construction Deal
Austin, TX Area
Lake LBJ

440K with 25K Decorating allowance at Close + 12 mos. Leaseback!!
(Builder will buy back after 12 months)


Investor will take out a construction loan of 440K with No out of Pocket! If for any reason, the investor has to put money down, it will be rebated at close. Upon close of escrow, the investor will be rebated 25,000 as an incentive. The Developer will pay 12 months of mortgage payments at $3750 in a guaranteed leaseback. The developer is also willing to buy the properties back if they have not sold within 12 months.

Note**
Since the developer is willing to guarantee the leaseback, and take a substantial risk along with the investor, any appreciation profits will be split 50/50 at time of sale.


Location
The site is just minutes west of Marble Falls, TX. Marble Falls is a well to do town off of hwy 281. The town is situated about 30 minutes west of Austin and 1 hour north of San Antonio. It is a beautiful town located in the Heart of the Texas Hill Country. Many of the town's residents are retirees and several "out of towners" own vacation homes in the area. The town is home to Horse Shoe Bay, a lake front golf resort well known to Texas residents. You have to see this place to believe it!!

Lot Descriptions
.386 acres
Colorodo River Access
Lake LBJ View
Private Channel and Boat Docks for each lot (see pics, will be widened and developed)


Home Description
Mediterranean Style Homes
2500 sq ft
3 Bedrooms
2.5 Baths
Study
Fire Place
Covered Patio
Numerous Upgrades!!


Appraisal Attached
Instant Equity!! - Comps Show that these homes are at least 100K Below Market!!
Only 1 Lot Left!!

[Jim Johnson]

OK... people we have been down this dusty road before...
yep... I found it... strange it seems we have some of the same players here...

http://www.magicbullets.com/forum/showthread.php?p=19814#poststop


if it looks like a duck, and walks like a duck, and talks like a duck...

QUACK

[ThreeRiversREI]

For those too lazy to go read the other thread started by the same poster, here are two key posts.

After re-reading some of your posts, it seems to me that you guys are trying to figure out where the 25k is coming from. Let me try to explain.


These are fictional figures, values are usually greater.

- Seller has home worth 175k

- Seller cant or hasnt sold home for whatever reason

- Our network comes in and negotiates with seller to buy home for 100k (giving us 75k in equity)

- Network places home in trust

- Network attracts buyer/investor (you) with the no out of pocket and 25K incentive.

- Buyer has 620 FICO descent income and is approved by our lender

- Lender lends buyer 175k to aquire trust from network

- 75k in equity is divided up amongst network and buyer.

- Buyer gets a standard 25k and property.

Remember these figures are low we usually work with homes that more expensive. An example might be a home that is appraised at 360k and we get it for 280k. We deal with nicer homes because thats where the money and equity is. If you are not aware of what a 300k home looks like in San Antonio, or TX for that matter go to yahoo real estate or something like that and take a look.

For a few of our properties, go to
www.trustbuilder.net

Two noted. First, why aren't they willing to simply sell the home for $150k ($175k - $25k rebate in above example)? Doing so with all other loan terms the same would result in a lower monthly payment. Second, the website referenced requires a username & password that Josh (ksg046) never did provide.

Greetings MB Family,

This is a follow up to the request for investors that have a 620 score which would equate to a standard 25K profit, with zero down..

Granted San Antonio is currently a hot market, I have met with all the key players that put these deals together and the main thing that stood are these:

1) There is no house list, They find a home upon inding investor. (or sometimes they have one available)

2) 25K is not the standard ROI more like 5% of selling price?

3) Appraisals are extremly high

4) They are cashing in on potential investor equity 5-10 years out. (Hope the market doen't take a turn for the worst or you get into to trouble, if this is the case you will be stuck with a home appraised way above today price. (I believe it's call negative equity)

5) I would not recommend this investment unless you are one hell of a gambler.

6) The story about they being the only 3 people in the country that does these kinds of deals is way off as I educated some of the key players doing this thing, I also mentioned to him that if the appraisor who is performs these appraisals continue proving these types of appraisals he or she may be subject to prosecution. I would say the DA calls it loan fraud, knowingly appraising a house 20-30% above what the market will bare. I also informed the RE performing these deals how unconfrotable I was with all of this, ESPECIALLY the inflated appraisals.

Just my two cents, newbies and oldies beware, Think before you excute,

Thanks for all the MB Family who provided input, I hope this encourages at least one person to educate thmesleves before they trip hard.


Thanks

Carlos

Newbie at large,

In other words, as was suspect by several members, regardless of Josh's intentions (which I make no characterization of), this boils down to a scam that has been perpetrated in many other areas to artificially inflate appraised value, sales price & mortgage amount.

[Debbie]

Oh yes! I had forgotten about that!

Hehehe! We sure had fun with him! Thanx for the memory trip, Jim!

[ksjg046]

You guys arent suggesting that this is some sort of scam or something are you? I thought this site was about promiting and helping investors. Besides, if I was out to scam, why would I do it here with so called "savvy" investors? If youre not interested, thats fine, but maybe you should do your own due diligence before you make assumptions. This is a legitimate opportunity! Besides, I really cant see how anyone could be scammed doing something like this...I have appraisals and comps to support everything. I also have financials for the builder and developer. Also, this opportunity is totally seperate from my previous post. And there are absolutely no inflated appraisals. If anything, appraisals are low. Again, comps will support this!

[Jim Johnson]

You guys arent suggesting that this is some sort of scam or something are you? I thought this site was about promiting and helping investors. Besides, if I was out to scam, why would I do it here with so called "savvy" investors? If youre not interested, thats fine, but maybe you should do your own due diligence before you make assumptions. This is a legitimate opportunity! Besides, I really cant see how anyone could be scammed doing something like this...I have appraisals and comps to support everything. I also have financials for the builder and developer. Also, this opportunity is totally separate from my previous post. And there are absolutely no inflated appraisals. If anything, appraisals are low. Again, comps will support this!
I am suggesting this is a scam.

In general, these deals are scams. Once in a blue moon you might put together a deal like this that does not scam the buyer, but for the most part these deals are scams. If you have not been following the national news on these deals, and most recently the busts in Nevada concerning these exact deals, you are not in touch with your own kind of deal.

One more thing, your not talking about real estate investing, your speculating. Very different game... and dangerous to pass off speculation as a investment...

[ksjg046]

Speculation? How do you figure? This is a legitimate investment. These are properties that will not onlyu appreciate rapidly, but they will cash flow as vacation rentals. Do your homework! Theres no scam here... Youre nuts! When you guys find a hole in the deal or anything illegal, then call it a scam. Until then mind your business.....

[Debbie]

You guys arent suggesting that this is some sort of scam or something are you?

There's plenty that I want to say to you that would not be appropriate hence I'm restraining myself.

I will say this---I must remind you that we've asked you questions in which you never answered nor clarified. That told us plenty of what we suspected about you. You provided the suspense and you provided us reasons to doubt your sincerety. So don't look at us as if we have no right to question your integrity or lack thereof. :smiley6:

[ThreeRiversREI]

Speculation? How do you figure? This is a legitimate investment. These are properties that will not onlyu appreciate rapidly, but they will cash flow as vacation rentals. Do your homework! Theres no scam here... Youre nuts! When you guys find a hole in the deal or anything illegal, then call it a scam. Until then mind your business.....

Not a problem.

You presented this SAME EXACT deal back in May. :SM017:

At that time, you public answers were quite evasive, but a member took you at face value and contacted you off the forum for more details. The analysis at that time was that:


You kept saying that you had a list of homes that you would make available if people called you directly. However, when you WERE called, it turned out there was no house list. This was a clear misrepresentation on your part, made multiple times in this forum, at that time.
Appraisals are extremely high. This is the key to the scam being perpetrated across the country resulting in fraud charges against the perpetrators. Namely, collusion among the seller, appraiser & mortgage company/broker to pass off an inflated appraisal as representing fair market value.
At closing, due to the high appraisal and the over-financing to generate the $25k "decorating allowance" the properties when compared to TRUE market value are in a negative equity situation. This makes the so called investment highly speculative as anything other than consistent appreciation will trap the buyer in the property with limited, if any, exit options.
Your claims that only about 3 groups in the country were doing this was also demonstrably false, if only due tot he number of different groups being investigated/prosecuted nationwide. This is either another example of deliberate misinformation on your part at the time, or evidence of just how little due diligence you performed before making such claims.


Homework done. Potentially illegal activities identified. So we're calling your scam a scam, and we're warning newbies who might get taken in just why they shouldn't. :SM034:

I wish you all the benefits of your karma. :SM124:

[dealmaker]

Wow, this is really funny. I spend a week out of town and come home to find my HOME TOWN being promoted on the site. I can't say anything about whether of not THIS OFFER is a scam, but I can tell you something about what is on offer here.

1. The house shown is NOT on the water, it's in an area that offers "city views", and they average about $200/sq foot. In comparison you can buy a pretty nice place on Lake LBJ, within 200 yards of my house for about $180 sq/ft, on the golf course for about $135/ft.

BTW, if you truly are WEST of Marble Falls and on Lake LBJ you're almost certainly on a SEPTIC, not on city sewer.

Oh, and the development that the picture is taken from has had houses built out for about 15 months now, I think they've sold about 5 of them but maye a couple more as they have about 30+ under construction now.

Just passing on some local info.

dealmaker

[SPIVALAW]

You might email it to Bush, I hear he may move back to Texas in a couple of years.

[ksjg046]

Dealmaker,

This is a new development in Kingsland. And yes, the lots are on the water. They back up to a channel that feeds into LBJ. As I said before, comps will support the appraisals. Dealmaker, did you forget that these homes can rent for 300+ per night as vacation rentals, with incredibly high occupancy?

No scam here guys. As for Carlos, the guy who supposedly busted my previous "scam", his whole issue was that he wanted to control our deals the way he wanted them to go. Meaning, he wanted to be in charge. Ha wanted to change the structure to pad his pockets. When we didnt agree, the deal fell through! End of story.....

As far as high appraisals go, you guys are nuts! I dont control the appraiser that the mortgage company sends out! No one said I had to control who does your financing.

[ksjg046]

Oh yea, Threerivers, this is not the same "exact deal." This is pre construction, which makes it a completely different deal all together, genious! The decorating allowance comes directly from the builder/developer. In the form of a rebate.

[Jim Johnson]

Oh yea, Threerivers, this is not the same "exact deal." This is pre construction, which makes it a completely different deal all together, genious! The decorating allowance comes directly from the builder/developer. In the form of a rebate.

So let see... the buyer pays the builder $400,000
The builder rebates to the buyer $50,000
So the property is really worth $350,000

For the buyer to cash out- he will have to have the property go up in value about $65,000 to just cover his down-stroke and fees to sell. What the property appraises for means nothing, what it sells for is the magic number.

If this is such a great deal... why are you not taking every one?

If I was making the kind of money your talking about I would grab every deal I could.

One last thing... if the only way to do this deal is to use your exact players you have put together... it reeks of scam. I should be able to use any lender, any appraiser to make this work.