Thread: 100% Return, $1mm > $3mm: 2 years

Where were you thinking? Phoenix area?

Yea, definitely Phoenix .... $1m in the Bay Area would buy a garden shed.

I got a better twist on that idea..OPM

1-Form your LLC with 4 members with great credit that can raise one million each in corporate credit lines witch is not hard.If you know the right contacts

2-Now you have 4 million to approach the bank and lets say you are lucky enough to buy 4 million worth of properties at 60 cents on the dollar one of there REO portfolios as you said MJ

3-Turn around and refinance those properties at full value, pull out your initial investment and your equity on top out.

4-Use some of that equity for holding costs ,interest payments, repairs etc , rent out properties , I would hold about 5 years cause i think a few extra years would bring higher values and a longer period to get out of this RE recession.

5-take that money and buy more places *********

I love it! Speed+

You are exactly right! That is what we do!

I'm in!!

Originally Posted by Jill

I'm in!!

Can you get a $1m line of credit?

let me know when you decided to get this idea some traction, it sounds interesting!

Originally Posted by SeanS

Can you get a $1m line of credit?

Possibly. But I was referring more to the numbers proposed by the OP. ~ $10-200K

Jill, gotcha.

This is MJ's baby so let's wait and see what develops. But no question this is a good idea.

Definately something I would like to do!

Wow. This is kind of funny because I am currently doing what MJ suggested right here in Phoenix (without any partners though). And you can get 100% financing and cash on top of that . So you do not need any of your own money though it would help to have a line of credit or other money as Proof of Funds, to initially get the process started cos, banks need to make sure you are good for the deal.


MJ do you have any good contacts within the bank or any REO lists ? If you need any lists or contacts let me know. I've been planning for this scenario the last 8 months and have put together some good contacts.

About a business line of credit for $1million, I am working on that route but it is pretty challenging unless you have a FICO of over 720. An LOC of $250k is doable under a seasoned corp. Also becareful of who you are dealing with since you have these frauds that try to take money upfront and don't deliver the goods.

The best deals are found in bigger packages. Say you look at $20 million of property and offer $10 million , that is a more likely scenario than offering $1 million for $2 million of property. Banks wants to sell in bulk and give bigger discounts.

Originally Posted by 6.0_bull

I got a better twist on that idea..OPM

6.0 is on the right track. Keep in mind that you can always flip your REO packages and make a ton of short-term cash. We have seen buyers own packages for less than 8 hours. If you are buying as rentals, there are a lot of costs involved and REO could kill someone that doesn't have the underwriting procedures in place. Also, the small, geographic specific packages are tough to get ahold of. But great idea nonetheless, I am seeing a lot of people make a TON of money on REO right now.

You have my attention.

It looks like a lot of people are trying to ride the MJ train.

Forgive me if I am reading this wrong, but to those who are chiming I am in, or I am interested, I do not think this was an offer but an action idea. Mj stated he would be doing this minus the LLC members.

My challenge would be, instead of looking for the MJ train to ride on, create your own. Put together your own team, steer your own ship, and take action. Even if you cannot do it at the volume that MJ speaks because of experience, funding, knowledge, contact, or whatever, then do the deal the can fit you where you are at.

The next 12 months will be prime buying opps, take action today, do not "wait and see what develops." Start looking for funds, start looking for partners, start contacting banks, start, start, start.

Slowlaners wait and see, fastlaners take action!

I had suggested buying bank owned REO at pennies on the Dollar back in September.

http://www.thefastlanetomillions.com...=8164#post8164

$3,000 do $1 million in 15 months. Challenging but certainly not beyond the realm of possibility.

Acquire an REO package from a bank. Make a bulk purchase of SFRs for 50-60 cents on the Dollar. Sell it for 60-70 cents in individual pieces. eg. the bank is offering $20 million of real estate for $11-12 million. Buy and sell individual pieces for $13-14 million. Things like this are being done on a regular basis in todays market. It pays to think BIG. The notion of buying a below market value property and flipping it for $20k profit is thinking too small.

So if anyone is suggesting that I am jumping on someones bandwagon, let it be known that I have had this idea for quite a while and have already taken action such as arranging financing for such a deal - there are some lenders who specialize in financing REO packages, contacting asset managers and third parties who can facilitate such a deal and I have also laid out exit strategies in conjuction with third parties.

On paper acquiring bulk REOs from a bank at way below market value sounds easy but in reality , a number of steps need to be taken prior to closing such a purchase - atleast if you plan on making money. There will be plenty of investors who will purchase these REO packages without doing much homework and they will eventually be forced to sell at a huge loss. I don't plan on being that person.

imerza- not suggesting about you at all, clearly from your previous post and this last one, you are taking action.

Getting the money is not a problem you can ask most of the people on the board that are also doing big deals. If the deal is right the money will happen. Borrowing 1MM is like borrowing 1K it just has more zero's the paper work is all the same.

Most of the time bank like loaning bigger amounts they do not have to do it as often then since like I said all of the paper work is the same.

Maybe on our next call we need to talk about how to get financing for deals???