We are hosting a new event on Sunday, August 1, 2010. I will informally address all interested attendees on how they can profit from opportunities in the trustee sale market. I have already met with many people individually, and there will be plenty of time and opportunity to talk with me one-on-one to ask questions. At this event, I will have a calendar for people to sign up for individual follow-up meetings on Tuesday or Thursday evenings where you will have a half hour of my undivided attention.
I have profiled dozens of trustee sale flips. It is obvious that investors are operating in this market through purchasing properties with cash and flipping them to buyers who require financing. There are ways that individual investors can band together to participate in this market and diversify their risks and lower their capital requirements. I will describe one particular method in detail.
I have arranged to have an appetizer station set up for us at JT Schmids. If you provide some basic contact information, I will give you a card for a free drink at the bar. Technically, that means the drink isn't free, but as any economist would tell you, there is no such thing as a free drink.
There is no shortage of accelerated default in Irvine. Today's featured property was purchased in 2004, and after the owner extracted what he could, he is leaving the rotting carcass for the lender.
This property was purchased on 3/26/2004 for $645,000. The owner used a $516,000 first mortgage and a $129,000 down payment.
On 3/22/2005 he obtained a HELOC for $150,000, but he didn't use it.
On 3/15/2007 he refinanced the first mortgage for $552,500.
On 3/27/2007 he obtained a $200,000 HELOC.
On 6/8/2007 he obtained a third mortgage for $125,000.
Total property debt is $877,500.
Total mortgage equity withdrawal is $361,500 including his down payment.
Home Purchase Price … $645,000 Home Purchase Date .... 3/26/2004
Net Gain (Loss) .......... $(81,094) Percent Change .......... -12.6% Annual Appreciation … -1.0%
Cost of Ownership ------------------------------------------------- $599,900 .......... Asking Price $119,980 .......... 20% Down Conventional 4.62% ............... Mortgage Interest Rate $479,920 .......... 30-Year Mortgage $118,898 .......... Income Requirement
$2,466 .......... Monthly Mortgage Payment
$520 .......... Property Tax $0 .......... Special Taxes and Levies (Mello Roos) $50 .......... Homeowners Insurance $448 .......... Homeowners Association Fees ============================================ $3,484 .......... Monthly Cash Outlays
-$414 .......... Tax Savings (% of Interest and Property Tax) -$618 .......... Equity Hidden in Payment $208 .......... Lost Income to Down Payment (net of taxes) $75 .......... Maintenance and Replacement Reserves ============================================ $2,734 .......... Monthly Cost of Ownership
Cash Acquisition Demands ------------------------------------------------------------------------------ $5,999 .......... Furnishing and Move In @1% $5,999 .......... Closing Costs @1% $4,799 ............ Interest Points @1% of Loan $119,980 .......... Down Payment ============================================ $136,777 .......... Total Cash Costs $41,900 ............ Emergency Cash Reserves ============================================ $178,677 .......... Total Savings Needed
Property Details for 3 HAGGERSTON AISLE Irvine, CA 92603 ------------------------------------------------------------------------------ Beds: 3 Baths: 3 baths Home size: 1,730 sq ft ($347 / sq ft) Lot Size: n/a Year Built: 1991 Days on Market: 28 Listing Updated: 40365 MLS Number: S622412 Property Type: Condominium, Residential Community: Turtle Rock Tract: Tst ------------------------------------------------------------------------------ According to the listing agent, this listing may be a pre-foreclosure or short sale.
This property is in backup or contingent offer status.
The Most Desierd 2 Story Floor Plan In The Heart Of Turtle Rock. Open Views Of Hills & Greenery. Gordeously Landscaped And Hardscaped Yard Done By 'rogers Garden'. Large Master Suite W/Plantation Shutters And Mirrored Wardrobe Closets. Main Floor Bedroom And Bath. Association Pool And Spa. Award Winning Schools This One Is A Great Buy For Turtlerock! No Mello Roos
Cost of Ownership ------------------------------------------------- $359,900 .......... Asking Price $12,597 .......... 3.5% Down FHA Financing 4.62% ............... Mortgage Interest Rate $347,304 .......... 30-Year Mortgage $71,331 .......... Income Requirement
$1,785 .......... Monthly Mortgage Payment
$312 .......... Property Tax $0 .......... Special Taxes and Levies (Mello Roos) $30 .......... Homeowners Insurance $250 .......... Homeowners Association Fees ============================================ $2,376 .......... Monthly Cash Outlays
-$289 .......... Tax Savings (% of Interest and Property Tax) -$447 .......... Equity Hidden in Payment $22 .......... Lost Income to Down Payment (net of taxes) $45 .......... Maintenance and Replacement Reserves ============================================ $1,707 .......... Monthly Cost of Ownership
Cash Acquisition Demands ------------------------------------------------------------------------------ $3,599 .......... Furnishing and Move In @1% $3,599 .......... Closing Costs @1% $3,473 ............ Interest Points @1% of Loan $12,597 .......... Down Payment ============================================ $23,268 .......... Total Cash Costs $26,100 ............ Emergency Cash Reserves ============================================ $49,368 .......... Total Savings Needed
Property Details for 355 HUNTINGTON Irvine, CA 92620 ------------------------------------------------------------------------------ Beds: 2 Baths: 2 baths Home size: 1,016 sq ft ($354 / sq ft) Lot Size: n/a Year Built: 1986 Days on Market: 11 Listing Updated: 40374 MLS Number: S624569 Property Type: Condominium, Residential Community: Northwood Tract: Hr ------------------------------------------------------------------------------
This is a regular equity sale. It is not a short sale or bank owned property. You can be living in your new home in 30 days or less. This end unit has a large patio and has been completely remodeled featuring a new kitchen with new cabinets, granite counter tops, back splash, flooring, stainless steel appliances, updated lighting and more. The ceilings have been scraped and feature a knock-down texture, there are washer and dryer hook ups in the unit, a walk-in closet in the master bedroom, and the flat screen TV in the kitchen is included with the home. Features high ceilings and the community has two pools and is walking distance from parks and the grocery store.
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