I’m  not surprised but I will admit that things went better than I had expected!

Because one of the deals involved flipping it became very obvious that wholesaling was the most
challengeing of all because it involved getting the end buyer’s approval.

The Great Investor Equalizer

Fortuantly, our end buyer was local and a very experienced investor. This helped but
most investors simply don’t have a high level of financing sophication so there’s always
the teaching and training to give them the confort they need.

Remember, investors are basically GREEDY by nature and will try all sort of things to get your price down.
However, when you tie the financing into the deal, the game changes.
We were able to get  the FULL appraised price for all our properties because
we had the financing that most investors can’t get .  And we know it!

Having the financing in place has proven to be the great equalizer.
“Pay my price or get your own financing” is the phase that pays.

We were able to get all the deals placed to a tune of $600K .
In my opinion, the program is best used for purchasing for your own portfolios.
My first contact with the Bank was on May 7, 2010. 

In less the 20 Days we were able to get both offers approved and to get the financing in place for
both Deals. Again, the flip adds an additional level of complexity to the deal dynamics.

Follow my deals and the videos at:!
www.commercialfinancingacademy.com

It begin with an investor desiring to purchase a REO hotel property with no money.
The problem was this.

I had a 99% financing program but the borrower couldn’t put the 1% down. On the surface I thought is was just another undoable deal.

After revisiting the situation and considering my financing sources, I saw an opportunity to combine my financing program with the disdressed REO’s and created a new niche financing system for REO .

With this program, I’ve been able to develope a 100% financing system for REO properties with casn back at each closing.

Now I’ve created a new jount venture program and will work this system with a small group of investors. The only requirement for this training is that all the members must be investors. This program is not open to Brokers.

We will require a 20% equity position in all of the deals. I’ve elected to take equity in each deal in order to make this training available to more people.

Tell me if you would be interested in participating in this program?

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
****************************************
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