I finally have the tally for the investor partnership deals that we started in my November Detroit seminar. We were supposed to do a total of 13 deals but 2 fell out of contract because of due diligence problems. So, we ended up with a total of 11 deals as partnership deals with our students.
So...a huge congratulations to those students who ended up being "overnight" millionaires because of that extremely rare partnership opportunity!
Of course, as I already mentioned, since these deals were done directly with my investor partner and because I had no management or administrative part in these deals, I didn't take a piece of the action. This was for my students and not for me. And no, it's not because I'm being "nice" but rather I don't partake in deals where I get less than half of the gained equity and monthly cash flow.
One of the deals was a bank-owned property in Texas that appraised out at $3.2 million. My investor partner and student ended up negotiating that building down to $1.9 million because it had only a 62% occupancy level. Pretty damn good, if I don't say so myself.
So, how does this all work with REO foreclosure properties, especially apartment building properties? Are there still foreclosures available?
The answer is YES! There absolutely are multifamily and commercial foreclosures still available. And the banks are in a massive rush to push these final toxic debts off their books and onto an investors' shoulders.
You see, small- to medium-sized banks are pushing the last bit of their REO foreclosure inventory back into the market due to the U.S. Government regulations on lending. Any bank with an excessive amount of toxic debt on their books cannot lend money. And if they can't lend money by opening new mortgages, they don't make any money.
The economy has taken off in full force. Investors are buying properties left and right, especially passive income properties. They are especially interested in fully performing properties and not so much the "problem children" properties that have occupancy issues, as with many REO foreclosure properties.
This leaves the playing field wide open for you!
But...I'll be honest. These banks are quickly flushing out these REOs as fast as they can. And they are doing what they can to get rid of them including sending them to auction (which isn't paying off as they had hoped).
Time for you to step in and claim some of these properties that you can still get below market value! In fact, these are pretty much the ONLY types of properties you can still get below market these days: bank-owned REO foreclosure properties.
Now, there are some things you need to know that will work in your favor:
1) Banks are still offering something called bank-direct funding. Since many of these REOs are below the lending requirement of 85% in occupancy level and banks don't honestly expect most investors to shovel 100% cash into a deal anymore, they are willing to offer, on average, a 90% LTV plus rehab money (in some cases) if needed!
2) Our 100% LTV source can get you the cash for these deals if the bank doesn't want to offer bank-direct funding for the acquisition. They don't have an occupancy level requirement either provided that you are getting the deal at or below 80% of the appraised/market value.
3) You cannot and should not purchase a 0% occupied board-up abandoned/vacant property. Those days ended back in 2011/2012. Don't make that mistake in today's 2015 economy! Instead, find a property that is still "in service" with at least some tenants that are still occupying the building. Properties that are anywhere from 10% to 80% occupied are REO deals you can get below market and can quickly "cure" occupancy problems within 3 to 6 months in most cases.
I initially started teaching my REO strategies back in 2010. And I hadn't done a major upgrade to my course since then...until now. I now have the 2015 version of my NEW Apartment Building Foreclosure Cash Flow System which I'm "re-coining" as The NEW REO System for 2015.
What's exciting about this course are all the elements that reflect in today's multifamily and commercial REO environment as well as all new resources to make your deals work.
Even more exciting, I have a video with the course that shows you HOW to find the REO deals, HOW to draft the offers AND a required proposal to the bank, and HOW to get your deal financed if you're not getting bank-direct funding. I've never revealed these fine-tuned details in ANY presentation I've ever done on REO investing...until now!
For my amazing blow out deal for this weekend and through early next week, I'm offering this brand new course for a basement-bottom deal. Even better, you can get in on the upcoming 8-week REO mentorship group (which is also brand new) so you can learn exactly how all the processes work.
For 2015, all of my mentorship groups are going to include live training webinars. This is something I've never done before except for my Apprenticeship Group which I stopped doing 4 years ago! These live training webinars are instrumental in you understanding how all this works!
Here's the link to check this out including an incredible audio seminar I put together:
Also, you're going to think I lost my mind with the different payment options I'm offering. Actually...maybe I really have lost my mind!
See you at the top!