How To You Promise Closing/cash In 9 Days?
I see these add all over and of course there's even a sample Foreclosure letter here on this forum that promises cash and closing in 9-10 days.
How is this done? You obviously cannot get through a mortgage lender in 10 days to close. So, does one have to have the cash in reserve or have another investor on call for stuff like this?
Thanks,
Robert
One method to do this would be Subject 2. There is a forum on this site for Sub2, but here's a very basic breakdown. You can purchase properties with very little initial cash outlay. They sign over title to the property and you bring their loan current, and commit to making sure that their payments are made. How quickly could you come up with a small amount of cash? As little as $10 in an extreme condition, but $500 to $1000 is more common.
Jeff
Jeff,
Thanks. I was wondering if this was the technique people were using. But, if the cash is typically only 500-1000 do you mean the seller is only behind by 500-1000 dollars?
Thanks again.
Robert
[addsig]
Not all Sub2 deals have owners that are behind on their payments. When they are, you would have to add that to the deal, and this could reduce your cash to the seller also. I outlayed a hypothetical deal here http://www.thecreativeinvestor.com/ViewTopic27330-19-14.html
keep in mind that these were just example numbers. Yours will depend on your ability to negotiate with the seller. Keep in mind that you may have the only solution that they discover to their problem.
Jeff
Robert,
The investor typically uses his/her own money to catch someone up or uses the help of a private or hard money lender.
Thanks to all of you for your help! This has been very informative.
Robert
You''ll probably also have to work VERY hard during those 9 days.
Ther are almost always tricky problems to solve along the way.
perfecto,
I'd get a warranty deed That night. Order a title search or abstract the next day, in a couple of days if all is clear, I file the warranty deed. When they are out of the house, I write a check. We're done. How hard was that? There's not a traditional closing to go through with Sub2, so I'm not sure what you mean by having to work VERY hard for 9 days. [ Edited by jeff12002 on Date 05/20/2004 ]
Jeff,
That sounds fairly easy.
Robert
where you work very hard for 9 days is, if you don't have the money on hand, then you must call your predetermined list of cash buyers/backers/partners to find which one is interested in the place. could take some persuasion, could just take 1 call.
concerning title, this isn't "hard work" but you have to hound the title company sometimes to put a rush on your report. nerve racking, but not hard work.
basically, get the contract signed and you have 9 days to try to not lose your deposit (whatever you put down) and find the cash. get it low enough below fmv and you're most likely in!
Quote:
On 2004-05-20 20:10, jackman wrote:
basically, get the contract signed and you have 9 days to try to not lose your deposit (whatever you put down) and find the cash. get it low enough below fmv and you're most likely in!
This sounds more risky. So I assume you need to get a deal that either you can pay off the debt or have hard money lenders/buyers who can?
Robert
[addsig]
Hard money comes to mind or an all cash closing that takes place in 24 hours.
I recently offered same day closing on a property.
[addsig]
Thanks Jeff.
I guess you all are much better at this than I. No problems with titles. No "advice" from friends, neighbors or attorneys. No last minute competitive bids. No sudden change-of-heart or mind. No last minute decision to declare bankruptcy. No work finding sellers or buyers.
Just a quick and easy way to make a fast buck.
That's why I'm here. To learn how easy it all is and to try to emulate that for myself.
Perfecto,
That's not at all what I'm saying, or indicating. Not every deal is problem free. I guess the difference is in what we consider to be "hard work for 9 days".
I would have asked them about the title, There are things that come up that I am prepared to deal with, and others that will make me lose interest completely. I deal with those that I can.
When their friends, Neighbors, or Attorney are prepared to make a better offer than mine, then I would encourage them to accept it. If not, I explain again the reasons why my offer is fair etc., I don't have to buy their house, and won't beg them to do business with me. The ball is in their court now. Not mine.
Last Minute Bids, and changes of heart happen in this business, not just Sub2. I consider this to be a given, and deal with what I can.
If they are in arrears when I went to the house to see if their property qualified for my program, I would have discussed the bankruptcy option with them, and the consequenses, and timing of this. This should be a surprise only rarely.
Finding Sellers is what I try to do every day. I consider this to be a part of daily business, not part of an individual transaction.
Finding Buyers again, is part of doing business. After the deal is done. Until then, I have nothing to sell.
Every transaction is not easy, or a cookie cutter deal, but none should take all day, 9 days in a row. Not even close!
I'm not nearly what I consider rich, and that's not why I'm trying to do this business. With my attitude, maybe I'll never be. I offer one maybe two solutions to a homeowner that needs to sell their home. If we do business, great. If not, I'm off to work on the next one.
Jeff
Jeff,
My aplogies for the sarcasm.
My point is that this business definitely entails work.
Maybe it's not ditch-digging hard. Somedays it's harder than that. Somedays you luck out.
There's no doubt that it pays better than digging ditches no matter how hard an individual deal may be. Unless, of course, you screw up or get unlucky and lose everything.
My point for newbies is that you get out of it what you put into it.
I'm sure you know that already.
No need to apologize, I over simplified things, and you called me on it.
If only due dilligence was as easy to do as it is to say.
Jeff