5. 06.
There are so many REO (Real Estate Owned) properties with banks that they are trying to sell them off at very deep discounts. These properties are obtained when the owner is not able to pay the mortgage and the bank decides to foreclose on the properties. These foreclosure properties are a great opportunity to make some money! What if you are not interested in buying the properties for you but you would like to make use of this opportunity to make some money for your self? It is possible and without any money of yours. There are two proven ways to make this happen.
The most important thing in real estate property – Location, Location, Location!!!
The first step is to identify a property in a good location and a reasonably good condition with repairs less than $15,000. Typically, properties that sell quickly have three or more bedrooms, one or more bathrooms, basement, yard and garage. This rule applies to properties anywhere After you identify the property, negotiate with the bank and bring down the price to at least 40 cents on the dollar. Your intention to flip it immediately should not be revealed to the bank. While some banks don’t mind that you are flipping “as is” (i.e., without any remodeling or fix up of repairs), others do.
Typically, a real estate is flipped “as is” using an assignment contract. Assignment contracts are written by adding the clause “and/or assigns” after the buyer’s name (either the individual buyer or the company’s name). For example, John Doe wants to flip a property “as is”, then the offer to purchase property for $40,000 will contain buyer’s name as “John Doe and/or assigns”. This clause gives the John Doe the authority to assign/sell the purchase contract to anyone for a fee (for example $10,000). So, now John Doe makes $10,000 by selling the contract Mary Smith and she can purchase the property for $40,000 from the seller. But the problem with banks is that they will not accept an offer to purchase document that has the clause “and/or assigns” after the buyer’s name.
So, how do you flip REOs “as is” without using any of your own money? You have two options:
1. Purchase Property to Land Trust: Land trust has several parts to it. The important parts for this article will be the Trustee and the Beneficiary. The trustee can be a reliable relative, friend or an attorney. The beneficiary has all the powers to this property and hence the owner. You have to inform the bank that you will be buying the property to a land trust. Normally, they will agree. If you (John Doe) are buying property at 123 main street, then in the offer to purchase, you will write the name as John Doe, 123 main street Trust, Trustee, exact vesting TBD at closing. The phrase “exact vesting TBD at closing” allows you to assign the beneficiary rights to anyone who pays you an assignment fee. You can tell the bank that you are not sure how many investors will be partnering in this deal and that’s why you have not mentioned the beneficiary. So now, they will allow you to purchase the property even though you do not have a beneficiary listed. The Trust does not have to be created before making the offer to purchase as long there is an intention to create a land trust later. If this is the first time you are using land trusts, then it is best to get help from a real estate attorney who has experience in land trusts because the rules can be different in different states in the US. The two keys to flipping properties successfully using land trusts are finding the right title company and the right attorney.
While you are negotiating with the bank, you can also start finding a buyer of this property. One of the easy ways to find a buyer is to post an ad in free websites like Craigslist and others. For example, you are purchasing a property that is worth $100K in its present condition. You managed to negotiate the price $40K. From Craigslist ads, you find your end buyer to purchase it from you for $50K. Request the buyer to pay you $10K so that you can add his/her name as the beneficiary. Tell the bank your buyer is your investor partner. After you receive the $10K from your buyer, put his/her name as the beneficiary. So, now you have made $10K profit without using any of your own money!
2. Double Closing: Double closing is when you are closing the seller and the buyer on the same day i.e., you are using the money from your buyer to close the property from seller and the difference between your purchase price and your sale price will be your profit. In one or two states, land trusts are not allowed and in a few others land trusts are frowned on. In such state you have to use double closing method. As mentioned in method 1, while you are negotiating you have to find a buyer using the same methods.
Here, you may lose some money in fees for closing costs and also if you have to bring money for a few hours from hard money lender, they (hard money lender) will charge you around $2000 to $3000 for this service. If you search on Google for money for a few hours until you close with your end buyer. To obtain these funds, there are no credit score and history checks. To summarize the two fees involved in this method of flipping: a) there are closing costs of around 3% of the sale price. b) The double closing funds fee of $2000 – $3000. You have to negotiate with the bank and your buyer in such a way that you make up for the loss in these two fees. It is good idea to inform the title company that you will be double closing. First, bring/wire the double closing funds to the bank/title company and pay for purchase of the property from the bank and get the title in your name. Next, have the buyer bring funds for the purchase of the property from you for a higher price. The difference between your purchase price and sale price minus closing costs minus the double closing funds will be your profit!
While banks frown on “as is” REO flipping, they are badly in need of clearing the properties from their ever growing inventory so sometimes they do not mind at all unless you make it too obvious by using the clause “and/or assign”. So it is best refrain from using this clause. Also, it is best to refer to your end buyer as your investor partner instead of making it obvious that you are selling your property to the end buyer. REO flipping is a great real estate opportunity with low risk. The banks are badly in need of selling their foreclosed properties so start contacting banks’ loss mitigation departments for REO properties in your area.
2. 04.
How to Have the Metabolism of a Jet Engine…
Do you have any idea how much fuel an airplane engine consumes
just to keep the plane in the air?
Well, it depends on how big the engines are, of course.
A Cessna 150 prop engine, for example, uses about six gallon per
hour.
A Boeing 747 jet engine, however, uses one gallon of fuel…
…PER SECOND!
If your metabolism is revved up to consume calories at a higher
rate, what do you suppose happens?
You lose weight!
Did you know there are certain “tricks” to eating that will rev
up your metabolism and cause you to burn off more calories than
you consume?
This is just one of the MANY techniques you’ll discover in “Fit
Over 40,” the plan that models what successful people have done
to go from old and fat to biologically YOUNGER, healthier, better
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Here are more of the many things you’ll discover…
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–How to transform your life using a single technique. The
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Try this…
Scroll halfway down the page to where you see the 10 photos to
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YOU can do it.
Period.
Healthy Foods That Can kill
Nowadays, those who would like to get fit are so committed to their daily exercise routines that if they happen to have missed one of their daily workouts they’d feel really bad about themselves.
In order for them to reap the harvest from their vigorous workout, not only do they strive to stick to their exercise programs to the letter, but also they’d use many a kind of supplements to keep them going at all times.
Energy bars, sport drinks, low-fat foods, protein powder and the like are some of the most popular choices employed as their “pick-me-up” super duper power foods. But more often than not, these supposedly “health foods” can do much damage to the body beyond anyone’s comprehension.
Plenty of these packaged foods labeled as “healthy” and “natural” are often found to contain anything but health food.
For example, these “exercise nuts” buy energy bars for extra energy while filling their nutritional needs on the fly, but the sad truth is that these bars contain hydrogenated vegetable oils and trans fats that rob their body of vital nutrients, create fatigue, and promote heart disease.
They will often depend on sport drinks that promise to provide them with nutrients to give them the much needed “competitive edge.”
But these sport drinks have been proven to contain high fructose corn syrup, which induces a hormonal reaction that blocks important minerals, compromising rather than improving their performance and sport competitiveness.
So many people are particularly drawn to buying “low-fat” foods that claim to be able to help them lose weight. But little do they know that these so-called “low-fat” foods contain artificial sweeteners that create cravings, lead to further weight gain and produce formaldehyde which is so toxic to their liver and brain that these artificial sweeteners are believed to be even more toxic and harmful to the human body than rat poisons.
So in other words, these high energy bars will make people tired, sport drinks will make them weak, and low-fat foods will make them fat – fatter and fatter indeed.
One may think that if these are so bad how come they’re allowed to be made available to the average consumers.
The reason often is because those food manufacturers, in order to succeed in securing their profits by misleading the public with mis-information, have been paying big bucks to fund many “scientific” researches the findings of which, of course, will be tailored-made to the favor of their advertising campaigns, which will further help to impose such a “positive” image and message on these advertised “health foods” that the public will have no way to find out about the right and the wrong.
Therefore, the consumers must owe it to themselves to read the labels of the kind of foods – health foods in particular – they’re going to buy such that they’re better equipped with the correct understanding of what they’re “biting” into; thus reducing much chance of being ripped off by this false and misleading advertisement that has gone rampant.
