How to Find Residential Back Flip™ Deals
When talking about a Residential Back Flip™, it’s best to work with certain types of properties.
Here we are going to answer the question…
What are the easiest types of properties to qualify for a Residential Back Flip™?
CRITERIA #1: The loan on the property has to be a “Jumbo Loan”. What is a Jumbo Loan? A Jumbo loan is what is called a non-conforming loan.
What the difference between a conforming loan and a non-conforming, (jumbo) loan?
Conforming Loans: The government sets standard for what a conforming loan is. They put limits on these types of loans. Conforming loans can be sold off on the secondary market, packaged and then end up being sold on Wall Street. These are the only types of loans that Freddie Mac and Fannie Mae buy.
Non-conforming Loans (Jumbo Loan): These loans are outside of the loan limit. The limit today on a conforming loan is around $400K, or higher in some markets like California. A non-conforming loan like a jumbo loan is a higher end, riskier loan. Most importantly to us… these types of loans are not packaged and sold on Wall Street like conforming loans. They are sitting in a portfolio down at the bank. This means there is someone we can contact in order to negotiate the purchase of these loans at a discount.
CRITERIA #2: The property needs to be upside down… This means the bank must be owed more than the property is worth.
And guess what? 50% of jumbo loans are upside down today! This fact creates a huge opportunity for us to go in and purchase loans at a discount and back flip them to the existing homeowner
CRITERIA #3: The homeowner must have good credit. Specifically, they need a 700 credit score or better. This means, of course, they cannot have missed any payments or be in default of their loan. In order for us to profit, we will be refinancing their current loan. If they have bad credit,
we can’t do this.
Now, I’m sure you can see why a Residential Back Flip™, is the perfect strategy for today’s market. Especially since you won’t need any of your own money to do it! And with 50% of the properties that have jumbo loans being upside down today, we have been provided an amazing opportunity to make a ton of money while creating a “win” for the homeowner too.
Want to learn even more details for exactly how to you can profit from Residential Back Flips™?
Sign up for the webinar training detailing all that you need to know to get started.
Registration is found on the right side of this page. Just type your name and email in the boxes to register for a detailed 1 hour webinar training where you will learn exactly what you need to do and begin using our money to profit when you learn how to Back Flip™ high end houses.