when buying and selling real estate, his or her exit strategy.
And having multiple exit strategies is crucial within your arsenal.
you’ll profit from greatly.
and you’ve calculated the numbers.
you a quick $5,000 for a mere few hours of work. Or you could make
$10,000 to $15,000 on this deal if you played your cards right.
make.
Here’s how…
Let’s say you have a mortgage note that’s been non-performing for
eight months, and you find out from the asset manager that the
homeowner never plans on paying it again.
At this point, you can have a real estate agent approach the
homeowners and let him or her know their mortgage note is probably
going to be bought by a very small investor.
And this will give the homeowner options that big banks don’t have
the time or inclination to offer.
The agent then offers the homeowner a “deed in lieu” option, which
allows the homeowners to move peacefully without being foreclosed
upon.
And to make this even more appealing to the homeowner, you can
offer the homeowner a moving expense.
Here’s how this would work:
– You negotiate the mortgage note down to $100,000
– The current fair market value of that mortgage is $200,000
– You agree to pay the homeowner $2,000 for moving expense
– You find a buyer who offers you $115,000 for the mortgage (aka
“deed”). The buyer will buy this deed from you since you have
signed the ‘deed in lieu’ documents, and you pay the $2,000 to the
homeowner.
– You go to closing and walk out with $13,000 in your pocket
(that’s $15k minus the $2,000 for moving expenses.)
– Everybody wins in the process!
*IMPORTANT TIP – You don’t ever record the deed in lieu document
until you actually close on the deal. The deed in lieu document
that’s been signed by the homeowner, and a notary of the public is
not an enforceable contract until you pay the $2,000 to the
homeowner (which comes from your buyer). The actual document will
be held in escrow, and by having this document signed it allows you
to ask for more from your buyer.
Let me know if you need anything, and make sure to leave a comment
below with your feedback please!
Thank you!
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