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Want 5K? Beat My Deal!-The $5000 Real Estate Cure Challenge

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Want 5K? Beat My Deal!-The $5000 Real Estate Cure Challenge

This topic contains 7 replies, has 0 voices, and was last updated by Avatar of dave salcido dave salcido 10 years, 6 months ago.

Viewing 9 posts - 1 through 9 (of 9 total)
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  • #6726
    Avatar of dave salcido
    dave salcido
    Member

    Here’s a challenge I am offering to every real estate investor, REI club, real estate broker or agent in the country that is trying to find an answer for homeowners that are trying to keep homes with overly high payments and those that are grossly overencumbered:

    I will give you a $5000 interest in my land trust if you can beat my strategy for curing the real estate mess. Game on!

    Here’s my plan:
    1. I will get the homeowner to place their property into a land trust
    2. I will get the homeowner to assign me a beneficiary interest in the trust (BIT)
    3. I will get the homeowner to give me power of attorney and power of trust direction
    4. I will go to the homeowner’s lender and invite the lender to share equity with the homeowner in exchange for an affordable monthly payment and a principal reduction (if necessary)
    5. I will get the homeowner to remain in the property as a live-in property manager
    6. I will relinquish my (BIT) to the lender for 5% of fair market value
    7. I will get the homeowner and lender to agree to keep the property in trust until the property has regained enough equity for a future sale and an equity split between the homeowner and lender

    Can you beat this strategy? A $5000 BIT says you can’t! Let’s hear it all of you innovative real estate people!

    Get those creative juices flowing.

    #33603
    Avatar of jazz2jazz
    jazz2jazz
    Member

    the program is cool; what interests me is the #7:
    in most cases a homeowner whose loan is more that a value of the property has had problems with credit, as well;
    when and how does the process of rebuilding credit begin in relation to the landtrust?
    will a homeowner have to buy out the lender at a future sale when there is “enough” equity build up”?
    what does determine the equity amount for the future sale?
    pat kayda

    #33604
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Remember Pat, HOPES is nothing more than an EHTrust with the Bank as one of the Beneficiaries, that’s it. So, if you know how the EHTrust works when you place an RB in it, then you know the answers to those questions you just asked.

    1. Credit: All most lenders want to see is a history of on-time payments, typically 12, 24 or 36 months. I would think that the original bank, now Investor Beneficiary, would be more than happy to refinance the Settlor/RB, wouldn’t you.

    2. The Settlor/RB, as with any other EHT, has the first right to sell or refinance the place. All that is required is that the sale price of refinance be enough to pay off the encumbrances as well as the remaining beneficiaries.

    3. Equity is always determined as the difference between what is owed and the current value, or in the case of a sale, the final sale price. All “net” proceeds are divided up among the beneficiaries according to their percentage of beneficial interest in the trust. Again, no different than any other EHT transaction.

    FAIR ENOUGH?

    #33605
    Avatar of dave salcido
    dave salcido
    Member

    Absolutely right. Now, go out and get a homeowner into trust and then go out and convince the lender to become a co-beneficiary. It’s just that simple.

    #33606
    Avatar of corkhorner
    corkhorner
    Participant

    We ‘need’ some validity of participating lenders.
    ‘HOPING’ ain’t gonna get us there.

    c h

    #33607
    Avatar of dave salcido
    dave salcido
    Member

    @corkhorner wrote:

    We ‘need’ some validity of participating lenders.
    ‘HOPING’ ain’t gonna get us there.

    c h

    I already mentioned that Ocwen is doing it. But for some, even that isn’t enough. HOPING ain’t gonna get us there. You speak the truth. Neither will not making offers to homeowners or lenders.

    #33608

    #8 find banks which have legal standing and are the true party in interest before you allow them any part of any future profits.

    With all the “good news” hitting banks lately, its increasingly likely you won’t find too many larger banks allowed to do this.

    If it has MERS involved, count that one a freebee (if you have the right legal team).

    Without #8, the others are good ideas, but you may be piddling away the monthly payments to a pretender lender who has not standing/rights to receive payments.

    I’m still anxiously following the 3ARC results, while at the same time doing some of the same thing my own way (different method, possible truncated time frame). I’ll post results when I have them…hopefully 3ARC will too.

    #33609
    Avatar of corkhorner
    corkhorner
    Participant

    Well stated Jason Gray…..

    It looks as tho you have ‘pondered’ this well.

    It is well put to identify lenders/servicers [Ocwen is a servicer?] who have the legal authority to joint venture/equity share.

    WOW—What an ephiphany….for the greedy lenders to actually loosen the knot.

    Of course, it is also pertinent to state the lenders did not create the mess ALONE—-via the Liar Loan/Stated Income fiasco. Or the use of Liar Loans via ez credit to use as an ATM.

    All great vacations ‘MAY’ end sometime?

    c h

    #33610
    Avatar of dave salcido
    dave salcido
    Member

    @jasongrayinvestments wrote:

    #8 find banks which have legal standing and are the true party in interest before you allow them any part of any future profits.

    With all the “good news” hitting banks lately, its increasingly likely you won’t find too many larger banks allowed to do this.

    If it has MERS involved, count that one a freebee (if you have the right legal team).

    Without #8, the others are good ideas, but you may be piddling away the monthly payments to a pretender lender who has not standing/rights to receive payments.

    I’m still anxiously following the 3ARC results, while at the same time doing some of the same thing my own way (different method, possible truncated time frame). I’ll post results when I have them…hopefully 3ARC will too.

    I agree. If it were my property, I would not assume that the possible pretender lender was a real party of interested unless an SEC audit proved otherwise.

    However, there are about 65 million homeowners that would not, could not ever believe that they do not owe a debt to the one that is demanding payment. I know this for a fact because I have already talked to about 64 million of them. So, I let them believe what they will and offer an alternative to losing a home if they will assign me a co-beneficiary interest.

    Someday, the homeowner will become less naive. Until then, a lower payment in an equity share trust, if successful, will cause homeowners to do cartwheels.

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