Our mentoring program is moving right along. We had four new short sale students close their first short sale deal. Congrats to them. The fourth deal was not a short sale deal. The student found the property when marketing for short sales. An advantage of being in the program is that we are able to do any type of deal. Ryan and Anish head up the short sale portion of mentoring. If a student is able to get an equity deal, Bill, Jan and Robert work with the student. So our students are getting the best of both worlds, short sale investing and wholesale investing.
Deal number one was a short sale. The homeowner had claimed bankruptcy and thought that his mortgage problem went away. It doesn’t. Many homeowners are unaware that even if they claim bankruptcy, their house is still underwater. They have two options; let it go to foreclosure, or short sale the property. This particular homeowner decided to short sale the property with us. Since the owner filed bankruptcy, much of the paperwork needed for a short sale was already completed. We were able to get this property approved for a short sale in about five weeks. We were able to sell this property for a profit of $28,231.02 and this property had no deed restriction.
Deal number two was also a short sale. With this property we had to close on it for a week before reselling it. Make sure to always insure a property if you close on it. In this case it paid off. The property was vandalized waiting our one week before reselling. Our buyer was given a price reduction and we were still able to profit $21,435.04 on the sale of the property. As for our insurance claim because of the vandalism, we will be getting an additional $14,797.75 in profits, totaling $36,232.61 in profits.
Deal number three is the final short sale of the four deals. The profit on this house is the biggest we have made on short sales thus far. We were able to flip this property the same day doing a double close. The bank for this house did not require a deed restriction. We did nothing to the property and were able to flip it for a profit of $52,101.80.
Deal number four was the equity deal previously mentioned earlier in the article. The property did have a mortgage on it, but the homeowner was willing to pay it off before we closed, making it an equity deal. The property was fire damaged and needed a conditional re-occupancy. Our buyer had to be willing to make a deposit to the city to promise they would do the necessary work required within three months. Our buyer was more than happy to deposit the funds with the city and we assigned the contract to them. The profit on this house was $20,000.
In closing, we have had four different students, in three weeks, do deals totaling $136,565.43! That is an average of $34,136.85 a deal. Call us now to learn how you can do your own deals, 954-318-6042 or visit www.breia-new.corpboost.com.
The BREIA Team