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One Deal, $90,000...
All in a Day's Work for one Foreclosuresmass.com Subscriber
Dominic Kirchner II, Exit Realty Center
It was all in a day's work for full-time real estate investor and
ForeclosuresMass.com subscriber Dominic Kirchner II, and his partner Kevin
Manning. Here is their ForeclosuresMass success story, in Dominic's own
words.
"As usual, I got my ForeclosuresMass email one particular Friday
afternoon, and downloaded the data so I could send out a mailing to all
the latest leads. I got a response from "Jane". She was also really
surprised that her foreclosure was public record, as she had just received
the notice of default from the courts. She also didn't know which way to
turn.
Knowing she was in trouble, Jane tried to borrow money from her family to
make up the back payments and attorney's fees. When this hadn't worked
out, she decided to walk away from the house and lose all of her equity.
Being realtors, and having access to the MLS, Kevin and I knew what the
property was worth. There was an outstanding debt of roughly $240K, and
that was in arrears by $20K. The CMA (Comparative Market Analysis) came
to $325-335K. Jane did have another realtor coming out in a couple of
days to put the house on the market for $350K, which we felt was
overpriced.
* Next 37 17 investors only!
Listing the property would have surely forced Jane into foreclosure
because the auction was only 3 weeks away. We convinced Jane the only way
she could have helped herself was to NOT bind herself in a listing
contract with a realtor, but to work out a creative deal. This she did,
and Kevin & I were able to take over the property for the $240K she owed,
plus arrearage.
Once the property was vacant, Kevin & I set about getting it ready to go
on the market. The property didn't need a lot of work-- only about $5K
worth of cosmetic repairs-- most of which we did ourselves. Then Kevin
listed the property with EXIT Realty Center. A couple of weeks later it
was under agreement for $330K. The buyer had 20% to put down, and being
in the business, he didn't need to conduct a home inspection.
From the day I got the email from ForeclosuresMass to the day the property
was sold to the new owner, was two and a half months. Kevin & I gave Jane
25% of the proceeds, money she surely wouldn't have received, had she
listed and/or had it been auctioned off. This was a win-win-win situation
for everyone involved.
What makes this an even greater deal is that Kevin & I didn't use any of
our own money. We had investors lined up before we did the deal. We paid
the investors back, plus a generous interest rate, once it was finalized.
ForeclosuresMass asked me what contributes to our great success in real
estate investing, I would have to say that one element is the timely
information we receive from ForeclosuresMass.com.
In this instance, the homeowner didn't have enough time to sell her
property, and she knew a Realtor couldn't sell it in time. The
opportunity was there and we seized it.
The key is to recognize a good deal early, and not to let it die."
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