Derek received the warranty deed to the property (and hopefully immediately recorded that deed), Derek owned the property. Then Derek found a wholesale buyer (the appraiser) who agreed to pay $81,500 to buy the property from Derek (most likely using an ordinary purchase contract and a title company to close the deal). $78,500 went to pay-off the defaulted loan and the $3,000 remaining was Derek’s profit.

Most “motivated sellers” in this market are upside-down on their debt and they are “motivated” to find someone to overpay for the property. An upside-down property requires a “short sale” for cash. Most “short sales” are failing, because the bank “loss mitigators” are not responding before the auction date and the property is foreclosed. If you can negotiate with a loss mitigator before the auction date and reach agreement, then you can “double close” with your buyer. You buy from the owner (with short-pay to the lien holders) then immediately resell to your buyer. You can use your buyer’s escrowed funds (or “flash money” borrowed for one day from a hard money lender) to buy the property, then you deed the property to your buyer and take your check to the bank.

Thanks for the video.
Very cool

James

I appreciate your video, but you never showed how you assign the deal, weather it was a deed or an option you got from the homeowner.

Plus you didn’t mention that these tecniques will only work with homeowners who owe far less than what there home is worth, or you’ll never find a motivated buyer to assign them too.

Unfortunately, in todays market I think there is a much more abundance of homeowners who owe more that what there house is worth.

thank you

JJ