Bank Owned Homes: How to Turn Pennies into Tens of Thousands of Dollars

Recent Deal #1

Bank Foreclosure Deal (REO)
Springfield VA
Paid: $212,800
Sold: $334,900
NET profit: $24,634

Exterior After	Kitchen Before	Kitchen After	Entry Foyer Before
Entry Foyer After	Bathroom Before	Bathroom After

Here’s an example of the type of deal that happens ALL THE TIME with bank owned houses. I bought this REO dirt cheap from the bank because it had black mold in the basement. The mold resulted from the bank's neglect of the property. The bank gave me the property for pennies because they had so many other REOs for sale that they could not be "bothered" with upkeep of ANY of their properties.

All I had to do to fix the black mold problem was to fix the gutters that were missing in the rear of the house and stop the rainwater from entering the basement. I then had the moldy drywall removed and new drywall installed in the basement. That corrected the problem 100% and cost less than $2,000.

A property like this represents HUGE opportunity for students. I teach students how to find these especially beat up properties for pennies on the dollar. Remember that there are tons of bank owned properties for sale in every market. At the same time, I will show you how to decide which properties to pursue – and which are not worth it. As my student, you need to understand that 95% of the bank foreclosures in YOUR town are NOT worth pursuing. I'll teach you how to spot the very best deals so you don't waste your valuable time.

A Tidy Profit from a Probate Deal

Recent Deal #2

Probate deal
Fairfax VA
Paid: $225,000 (6-2008)
Sold: $315,000 (9-2008)
NET profit: $11,537

Exterior Before	Exterior After	Kitchen Before	Kitchen After

With this probate deal, I had sent out a batch of letters, and received a call from a homeowner who was desperate to sell and move to Atlanta. She had recently inherited the property with two tenants in it, and just wanted the cash. This property wasn't in as bad a condition as some bank foreclosures, but it was beat up nonetheless. She readily accepted my low offer.

Probate deals are among the very best of deals – especially when you get a call from someone who inherits a property but lives in another state. Heirs of probate houses follow the news just like everyone else and know they must sell cheaply if they want to get rid of the house and get their inheritance money. Many probate houses are owned "free and clear," meaning they have NO mortgages at all on them! This means that the heirs can sell to you very, very cheaply and still walk away with a large sum of money at settlement! Talk about a win/win situation!

How I paid $21,400 for a townhouse worth $130,000!:
A real-life example of a deal with a bank repossessed house

NET Profit: $33,600

Warning! Don't read this unless you want to hear a scary story (I made so much money on this deal, it was scary!)

You can get absolute steals on houses seized through bank foreclosures. One of my most interesting deals involved a townhouse in Dumfries, Virginia that was owned by a bank. Because the property needed a lot of repairs, the bank was very motivated to sell it at a very deep discount.

The bank arranged to have a real estate agent meet me at the property so that I could see the inside of the townhouse before making my offer. Both the real estate agent and I were surprised at what we saw next.

When I say the townhouse needed a lot of repairs, I'm not kidding. Once I was inside, I could not believe what I saw. Prior to the foreclosure, the homeowner had tried, without a permit, to hand-dig a wine cellar under his townhouse! In case you are not aware, it is illegal and dangerous to dig a huge hole under your house! Other than the hole that was the size of the dining room, the property was in very good condition.

Before making my offer to the bank I called the city of Dumfries and asked what I needed to do to fill the hole under the house. They informed me that the hole would need to be filled with cement and sealed up. I called a local cement company and was surprised to find that would only cost a few thousand dollars to fill up the hole.

Now that I knew how much money would need to be spent on repairs, I checked with a local real estate agent to find out the value of the townhouse. The agent told me that the property was worth $130,000. I was now ready to make the bank a very low offer.

I knew that the bank did not want the property and was willing to sell it at a huge discount, so I decided to make a very low offer. I told the bank's real estate agent that I could offer the bank $21,400 for the townhouse. Evidently, the bank thought the property was in worse condition than it was because my offer was accepted! That's right, I paid only $21,400 for a townhouse worth $130,000.

Now that I had a very good deal, I wanted to minimize my risk. I did not want to do any repairs to the property. As soon as my offer to the bank was accepted, I turned right around and "flipped" the property to an investor for $55,000. I told the investor to call the City of Dumfries and verify what I had been told. He checked and realized that problem amounted to filling a hole with cement. The investor was happy to buy a $130,000 townhouse for only $55,000. My profit on this deal was $33,600.

You might be wondering why I don't keep properties and have them fixed up, then resell them for a larger profit. Sometimes I do. However, if I'm in the process of fixing up a house and another good deal comes along at the same time, I'll quickly resell the newer deal to another investor. This way, I'm able to keep looking for more good deals, rather than spend all of my time getting houses fixed up.

You can find great real estate foreclosure deals like this in every area of the country. To make good money in real estate, all you need to know is how to find good deals and resell them to other investors. And don't worry, finding investors is covered in detail in the course. The real-life deals you've read are no more complicated than they seem. All I did, in each case, was find a property that I could buy at a deep discount, then quickly resold it for a large profit. Each of my three courses will give you easy, step-by-step methods that will teach you how to make big profits with foreclosure real estate -- the exact same way that I'm doing it.

A real-life example of a Pre-Foreclosure deal:

NET Profit: $25,000

Several months ago, I purchased a pre-foreclosure house worth $240,000 and paid only $153,600 for it. The owner had moved out of the house months before and was ready to let the house go to auction. I called the owner and found that she would be happy to sell me the house at a deep discount. After filling out a simple contract to purchase the house and making a $10 deposit, I turned around and sold the house -- the same day -- for a $25,000 profit!

I did this by selling the contract to another investor I knew. By purchasing my contract, the investor then had the right to buy the house for the amount agreed upon in the contract, which was $153,600, plus my fee of $25,000. So, the investor paid a total of $178,600 for a $240,000 house. Think of all the people in your town who would jump at the opportunity to pay $178,600 for a house worth $240,000!

Best of all, this deal helped everyone involved: The homeowner received money because she owed the bank much less than the $153,600 she received. She was able to save herself from foreclosure and still walk away with thousands of dollars in her pocket. I received a huge profit for finding the deal, and the investor who bought the house got it dirt cheap. Everybody walked away with a good deal! These pre-foreclosure deals are really common. You just need to know how and where to look for them, and my course will give you all the information you need!

And don't worry about deciphering complicated real estate contracts either. Once you've read the clear and detailed examples provided with my course, you'll be amazed at how quickly you can fill one out. I'll even show you how to fill out a contract so that you have absolutely no obligation. That's right, you can back out of the contract anytime you wish. No risk!

You can use this method to make tremendous profits in real estate investing without spending a lot of time or money. You don't need a license. You don't need a college degree. You don't need any experience in real estate at all. All you need is $10 and a few hours of spare time each week.

Income aside, you can also use this fantastic system to buy a beautiful house for you and your family at a very low price. Just think of the luxury home you could afford if you knew how to buy it at a 35% to 50% discount!

You’ll also learn, step by step, how and when to negotiate a short sale, where a lender is willing to accept less than the payoff amount for a property in order to close its books. This can mean more pre-foreclosure bargains for you – and huge profits.