MJ DeMarco
I followed the science; all I found was money.
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1) Create an LLC Partnership / Investment group - each member puts up $$ equal to $200K. So if there are 20 members, each would front $10K.
1) Call a Bank that is overloaded with REO's.
2) Make an offer on a "portfolio" of their REO's. For example, you find that 5 of Bank X's properties have a total offering value of $2 million. You offer the bank $1 million for all 5.
3) Rent for 2 years -- rent pays loan servicing, worse case, capital calls are done to cover shortfalls.
4) Sell in 2 years after RE recovery. I estimate the properties will be worth $3m.
Total return 100% per year.
This scenario exists due to supply/demand imbalances in the RE market. I hear that these types of deals are happening behind the scenes and banks are more forgiving if you take a portfolio off their hands. This is something I am considering minus all the members in the LLC and minus the book.
When everyone is selling ... buy!
1) Call a Bank that is overloaded with REO's.
2) Make an offer on a "portfolio" of their REO's. For example, you find that 5 of Bank X's properties have a total offering value of $2 million. You offer the bank $1 million for all 5.
3) Rent for 2 years -- rent pays loan servicing, worse case, capital calls are done to cover shortfalls.
4) Sell in 2 years after RE recovery. I estimate the properties will be worth $3m.
Total return 100% per year.
This scenario exists due to supply/demand imbalances in the RE market. I hear that these types of deals are happening behind the scenes and banks are more forgiving if you take a portfolio off their hands. This is something I am considering minus all the members in the LLC and minus the book.
When everyone is selling ... buy!
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