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This topic contains 12 replies, has 0 voices, and was last updated by Avatar of just call me rich just call me rich 13 years, 1 month ago.

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  • #5097

    Has anyone attempted to do, or successfully done, a deal using the NEHTrust with builders? There are a lot of over built areas around me and I am curious if I should approach the builders. I know usually they want their cash for the next project, but their houses are not selling, and this might be a way for some of them to move.

    Just curious. Thanks

    #26918
    Avatar of jerry carey
    jerry carey
    Member
    #26919

    Thanks Jerry!!

    #26920
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @Just call me; RICH!! wrote:

    Has anyone attempted to do, or successfully done, a deal using the NEHTrust with builders? There are a lot of over built areas around me and I am curious if I should approach the builders. I know usually they want their cash for the next project, but their houses are not selling, and this might be a way for some of them to move.Just curious. Thanks

    This is all me and my Partner are doing right now. We are having Builders use the EHTrust and selling the property from the Trust immediately for ALL CASH and for FULL PRICE.

    #26921
    Avatar of neftalipazo
    neftalipazo
    Member

    Deleted!

    #26922
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @NeftaliPazo wrote:

    Is the C.A.P. program still not available outside of your area? If so, how does a newbie like me, with just my first NEHTrust about to be finalized??? can put the same program together so that I can do the same transactions?

    The “C.A.P.P.” (Capitol Assistance Partner Program) is now available anywhere that we can find a “Participating Partner”. A few of our Partners are now willing to consider transactions outside their local areas because we have proven to them that their contributions are 100% safe and secure.

    @NeftaliPazo wrote:

    Also, is there a step by step process available for us members, no holes bard, on how exactly this transaction works so that we are versed and prepared to talk and present this option to both the builder and the buyer. I’m in Central Florida and this seems to be a heck of an opportunity right now that I’m completely missing!!!

    The Short-Term EHTrust Process, which we refer to as R.E.A.P. (Real Estate Assisted Partnership) must follow a simple but strict and exact process. It starts much the same as what you have already been taught by making an offer to aquire an interest in a Seller’s Trust (i.e. a Contractor or other Seller that can or is willing to walk from lots of equity, including Short Sales). This is followed up by a Standard Real Estate Purchase Contract with you pre-approved and qualified End Buyer, assuming whomever you made the offer to is willing to use the EHTrust.

    As far as you being “versed” in the process, this is all handled for you also through your Transaction Coordinator. He/She can take over the transaction for there, including all negotiations, three-way calls with the Seller’s Broker or Attorney and answering all their questions for you.

    This process is something that Dave Salcido and I have been working on for over a year now with incredible results. Not only have we done well for ourselves but we have delivered some mighty large checks to other Investors and Partners.

    Within a few weeks and with Bill’s/NARS blessings, a special website will be available to NARS Members that will guide you, and your clients, through the whole “Flip” or Short Term EHTrust process. All you have to do is login, enter the required data and a Transaction Coordinator will take it from there. If “CAPP” funds are needed in the transaction all you have to do is answer “yes”. There will even be a link to specific EHTrust Friendly Lenders that have already closed some of our transactions and know what to do, including dealing with the Title Company, so you don’t have to.

    Nuffsaidfornow!

    #26923
    Avatar of homesavers
    NULL
    Member

    @Scott_L._Moyes wrote:

    …making an offer to aquire an interest in a Seller’s Trust (i.e. a Contractor or other Seller that can or is willing to walk from lots of equity, including Short Sales). This is followed up by a Standard Real Estate Purchase Contract with you pre-approved and qualified End Buyer, assuming whomever you made the offer to is willing to use the EHTrust.

    I am finding several of these, however, most of them need rehab work. REO’s over here are selling at market with multiple offers now, i.e., no spread between appraised value and listed price. There are an abundance of qualified buyers now. I have two deals I am putting together yet the only way to get an equity spread is to create it by a long, drug out short sale. CASH is still King in California. I may be able to find this kind of a spread in high end 1 Million plus properties but where in the heck do you find the end buyers for those? There are not many people running around out there that make over a Quarter Million a year.
    I will keep looking because I think this a great program Scott and Dave have created but I need a good nudge in the right direction to start bringing deals in.

    #26924
    Avatar of neftalipazo
    neftalipazo
    Member

    Deleted!

    #26925
    Avatar of sstanton
    sstanton
    Member

    Hey Scott,

    Can you shorten that time frame? I’m sitting on a bunch of discounted properties and would like to work them.

    Stu

    #26926
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @sstanton wrote:

    Hey Scott, Can you shorten that time frame? I’m sitting on a bunch of discounted properties and would like to work them.Stu

    Time frame for what? If you’re referring to the website it is not necessary to wait to do your transactions. The whole process works quite well without a website. The main reason for the new site is to offer better easy of use for the tools you already possess and to allow us to serve all of you better and in a timely fashion.

    We can and are doing many transactions right now. However, if we had all of you bringing these same type of deals to us now, it would cripple us.

    @homesavers wrote:

    REO’s over here are selling at market with multiple offers now, i.e., no spread between appraised value and listed price.

    This does not work with REOs like it does other discounted properties. It works just fine for Short Sales but not REOs. There is another process that needs to be competed first before we can use the EHTrust with REOs.

    There must be a spread between appraised value and what the seller is willing to take. Why in the world, in this market, would someone be stupid enough to pay full price market price for an REO when there are thousands of properties on the market at 50% of Value and below.

    #26927
    Avatar of jerry carey
    jerry carey
    Member

    Scott said:

    There must be a spread between appraised value and what the seller is willing to take. Why in the world, in this market, would someone be stupid enough to pay full price market price for an REO when there are thousands of properties on the market at 50% of Value and below.

    Where in the world are you finding properties in this market for 50% or less of their current value :?: I can assure you … they’re not in S.D. County California :!:

    Jerry Carey

    #26928
    Avatar of jerry carey
    jerry carey
    Member

    Scott said:

    There must be a spread between appraised value and what the seller is willing to take. Why in the world, in this market, would someone be stupid enough to pay full price market price for an REO when there are thousands of properties on the market at 50% of Value and below.

    Where in the world are you finding properties in this market for 50% or less of their current value :?: I can assure you … they’re not in S.D. County California :!:

    Jerry Carey

    #26929
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @Jerry Carey wrote:

    Where in the world are you finding properties in this market for 50% or less of their current value :?: I can assure you … they’re not in S.D. County California :!:

    There are tens of thousands of properties at 40% to 65% out there right now, including my Home Town of San Diego. You won’t find them on a foreclosure or REO list either. There were lots of Builders and Developers that used OPC (Other People’s Credit) to build spec homes that never sold.

    You’re also not going to find them in neighborhoods with values of less than $1m, although I have found a few nice 60% to 70% deals in the $600k to $900k range.

    As long as there is enough spread, regardless of value, between the Appraised Value and what the Lender or Seller will accept, you can use the EHTrust to “Flip” the deal.

    Enough Spread = enough to use for the down, trust fees, CAPP fees, profits, commissions, etc.

    #26930
    Avatar of homesavers
    NULL
    Member

    @Scott_L._Moyes wrote:

    You won’t find them on a foreclosure or REO list either

    You hit the nail on the head, Scott to find deals with a big, “CAPP” ready equity spread. You will not find properties that are listed with that much equity because ALL REO’s are listed. NOD’s or Lis Pendens may not be listed. However, as soon as somebody gets in trouble they are looking for an agent.
    I found you need to find these properties before they are listed. This requires good marketing. I have asked my sources for properties that will sell for at least 80 LTV below Appraised value and they laugh at me. They say the properties are already listed at market value. There is no spread.
    I think your sweet spot is 1 Million plus for these and I do I have one available but I do not have an end buyer. So this does me no good as well. Boy I am getting tired of these paradoxes.

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