The #1 Most Asked Question About Residential Back Flips™
Why are banks willing to sell notes at such big discounts?
Here’s why: Do you remember the example we talked about in the first video where the property was worth $800K, yet we would be able to buy the note from the bank for only $540K?
Why would the bank sell us a property worth $800K for $540K?
Answer: Because they would rather have the cash than take the risk. You see, when the banks look at an upside down jumbo loan, they know these types of loans are now classified as the riskiest loans for banks to have now. Did you know a jumbo loan is considered to be even more risky than the popular subprime loans?
How do they know these loans are so risky? Because the fact is that 50% of jumbo loans are upside down, which means they owe more on that loan than the property is worth. If you are a lender, you might be thinking there is a high probability that this loan might go under and you are going to have to take the property back and foreclose on it.
Here are two big reasons banks will accept our discounted offer:
Reason #1 – Taking our cash now, lowers their risk of losing money in the future: The cost of foreclosure is very expensive and time consuming to the bank. Some of these costs include legal fees, maintenance fees, broker fees, unpaid taxes and all costs associated with holding a property. Also handling a foreclosure takes a long time. This is time the property sits and does not generate income for the bank. Foreclosures today can take 1 year, 18 months or longer. At the end of the day, odds are the bank will most likely get much less than what the property is worth today if they wait.
When we go in and talk to the bank, there is a very specialized, systematic way to negotiate and buy the note. We know exactly what to do and say to make this work. We know how to the bank will look at their costs and decide what amount they can accept, and it will inevitably be less than the current value of the property … and much less than the current amount due on the loan.
Reason #2 – The banks need cash now to keep their doors open. They need a certain amount of cash on hand to stay in business. When we offer cash for their risky jumbo loan, we get their attention. It’s a high risk loan – they don’t want to go through a default situation on this property.
THE OPPORTUNITY: There are millions of homeowners in jumbo loans… which means a ton of opportunity for us.
We will help owners keep their property by lowering their loan, lower their monthly payments and decrease their overall debt. They do not damage their credit. They keep their property. WE make money like in the example I mention in the video where we make $60K!
REGISTER FOR THIS WEBINAR TO LEARN HOW….
We are really excited to start working with you on these. Register for the webinar on the right side of this page to learn more on how to take advantage of this amazing opportunity today and learn how you can even use our money to do this.