DuranteParks.com » 99 percent financing for http://duranteparks.com/blog Commercial Financing Training Systems Tue, 13 Dec 2011 22:59:41 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 99% Financing For REO Properties Works! http://duranteparks.com/blog/314/99-financing-for-reo-properties-works/ http://duranteparks.com/blog/314/99-financing-for-reo-properties-works/#comments Sat, 27 Mar 2010 22:10:07 +0000 admin http://duranteparks.com/blog/?p=314 Yesterday, I followed up on a dead deal from last year and found the following.
The owner informed me that the property was in foreclosure. I asked for the lender and he gave me the lender and his bank contact also.

I call the lender and started digging in. Here what I found!
The property was not in foreclosure yet. The loan was in default and the Lender was working as a broker to sell the property to avoid the foreclosure.

Property Data
Property age: 9 Months old.
Property Class: A
Occupancy: 85%
Original Loan Amonut: $11 Million
Recent appraisal: $7Million
Asking Price: $5 Million
My Offer: 46% of the appraised value: $3.2M
The offer was received with great interest. I was told I must close in 30 days, and I insisted on 45 Days.

Here is where it gets really  interesting.
I went back to the original borrower and asked if he would like to get his property back. He responded with a fast yes.
When asked what was he willing to pay for it he said “$5.2Million…. That’s 72% LTV.
I told him he would need 2% down. He responded that he was willing to put 5% down if I could make this work.

We settled on a $5.0 M price.
Watch these numbers carefully.
****************************************
Appraised Value: $7 M
Max. LTV=70% = $4.9 M
My Purchase Price =  $3.2 M
Selling Price =  $5.2M
Down payment = $300K
Net Profits At Closing= $2Million Net
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This one Lender has 3 similiar properties . All are class A up and running.
Can you see why you only need 1 Deal, 1 Lender and 1 closing  per year.

Where I thought I had fail, is where I found success.

How many times have you heard these excuses:

  • “He just got lucky”
  • “She just happened to be at the right place at the right time”
  • “It’s easy when you have their talent”
  • ” They have all the resources”

Success without repeated and continuing failure is simply a myth. If you want to succeed, start by failing faster. And keep doing it. Just so long as you don’t fail the same way twice, you can’t help but learn something in the process. In time, you won’t be able to avoid success. Sooner or later you’ll learn so much that you start failing to fail. Get bad enough at failing and folks will start calling you lucky.

We should all be so “lucky”. http://www.youtube.com/watch?v=45mMioJ5szc&feature=youtu.be

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