There is more to investing in real estate then just fixing up and selling property. how would you like to earn 50% or more in profits without ever owning a house? It can be done in understanding the power of purchasing liens and judgments as well as notes on discount. Banks understand this and buy notes at a discount from each other all the time. Have you ever started with one bank and received a notice to begin payments to another – ever wonder why? Banks get the power of note buying and we will reveal some of the secrets to making high profits in the world of discounted liens, notes, and judgments.
Often when you come across properties in various circumstances you find properties that are over-leveraged with multiple liens and judgments. A property I had purchased a little while ago had two mortgages and four liens and judgments on it. I was able to negotiate discounts on several and took over the financing on the first mortgage and still was able to give the couple $3,000 to purchase it. This was accomplished by getting an Authorization To Release Information form signed by the owners and the information on all the liens and judgments on the property. Then I contacted each lienholder (many of the loans were years old and had not been paid on in years). I negotiated settlements on several and created increased equity in the property. The 1st mortgage was a 15 year mortgage and only had 2 years left on it. Taking over the financing means almost all of the payments I would make would be going to the principle since as you may know most of amortized loans pay more interest in the early years and almost none in the remaining few. Basically it is like getting an almost 0% interest loan. We have since fixed it up and spent around $20k doing so. Note that we did all of this in our self-directed IRA.
In short, after discounting the notes, paying the sellers and fixing up the house we will be looking at around 131% return on our monies after a 2 years and will be TAX FREE. Are your investments or stocks doing that for you?
Find out more on how you can do this with your investments at Virginia Real Estate Mentor (VREM)!