Jeff Adam: 2nd Trust Deed?

[205JUNKERScom]

You posted the statement below on a previous post, could you explain this process in more detail using a deal as an example?

"One last note, if you are 'wholesaling' properties for $20k - $50k which you will, you can collect some money on the front end and then put a 2nd Trust Deed on the property and get paid when they sell the property! This works great."

[Jeff Adam]

Junkers:
You will come across deals that have a lot of equity in them.  What you will find is that not everyone is in the position to give you $20k-$100k for a 'wholesale' deal.  In this case, I try to get as much money out of my 'wholesale buyers' as I can and then have my escrow draw up a 2nd Trust Deed.  I record this after 'assignment' and get paid on the back-end.  It works out very well this way.  Also, you can get paid more because you are getting paid when they sell it.


Example.  Purchase price: $300k
                 Retail Value:     $500k

                 Wholesale Fee  $100k

I will collect $10k upfront from my 'wholesale buyer'.  Then I will have my escrow company draw up a 2nd Trust Deed for $90k and my 'wholesale buyer' sign.  I then 'assign' my escrow.  After the deal funds, I record my 2nd Trust Deed.
At closing in 4-6 month's I get paid directly thru escrow!

They key in this business is being a transaction engineer as well as a Creative Real Estate Investor.....  

I learned a lot of my techniques by being in the business for over 10 years and doing over 300 deals.  Also by having an excellent mentor when I started out.  Did you ever wonder why even Tiger Woods has a coach?  

I would recommend you attend as many seminars, bootcamps and read as many books and tapes by credible real estate Guru's that are out there.  The credible one's I endorse are:
Ron Legrand, Robyn Thompson, David Lindahl, John "Cash" Locke, Mark Sumpter and Steve Cook...


Best Riches,
Jeff Adam

[205JUNKERScom]

Jeff,
Could you also give an example of your 100% finance on a wholesale deal?

[Jeff Adam]

Junkers:
Here you go-

I tie up a house worth $100k for $50k.  I contact my private lender and arrange financing for $60k plus closing cost.  I wholesale the property to my 'wholesale buyer' for $60k with a wholesale fee of $10k. I 'assign' my escrow to my 'wholesale buyer' with 100% financing in place.  I get paid my $10k thru escrow at closing.  

My private lender is doing a 100% financed loan of $60k plus all closing cost.  My 'wholesale' buyer does not have to come up with any money as my private lender is doing 100% financing on the deal and I am getting paid my fee thru escrow at closing.  


I am flying out of town today to rehab a 47 apartment building so I will not be able to answer anymore of your questions...


Best Regards,
Jeff Adam