I.  First Note & Deeds of Trust

Need investors for first position notes and Deeds of Trust against homes recently foreclosed by banks.

II.  BUYING ABOUT 50 HOMES FROM BANK PORTFOLIO IN PHOENIX AREA.

(ALL NUMBERS APPROXIMATE)

Buying up to 50 single family homes from bank in gated subdivision in a strong "B" neighborhood.  Originally sold for around $230,000 when built in 2006.  Buying for approximately $125,000 each.  Replacement costs around $195,000.  Would like to find a separate $100,000 investor for each home as a first note and deed of trust against the home. 

III.  Immediate rental on Lease/Purchase Option

We would lease the home on a lease/purchase option for about $1,250/month representing around a $180,000 sales price on a wrap mortgage ($180,000 at 7.5% int., 30 year amortization=$1,250).  The original investor would retain first position while the author's profit would be contained in the difference between the $100,000 investor note and the $180,000 sales price.  Lessee would own without a down-payment if he maintained a one year lease with no late payments.  Property would be underwritten upon initial lease term for FHA/Fannie Mae/Freddie Mac for ultimate take-out financing and/or third party note purchase.  Anticipated 1 to 4 year holding period for payments to be seasoned for take-out.  

IV.  INVESTOR RETURNS

Could provide current income up to 6.5% with an equity profit participation at sale and/or refinancing.

INVESTOR MAY CHECK OUT THOROUGHLY  BACKGROUND AND HISTORY OF AUTHOR.

V. THEORY

The theory behind the business model is that there is an excess of single family homes held by banks following foreclosures.  This is accompanied by a lack of qualified buyers.  Most potential buyers are currently rentors who have recently lost a home that cannot produce a down payment and have credit problems due to the foreclosure.   They may have good credit but just bought more home than they can afford over the last several years.  How do we get the "pig through the snake"?

There are no sub-prime loans any more for these potential buyers right when we need them the most.  Therefore, this business model creates our own Sub-Prime Loans at today's dramatically reduced home prices (When compared to replacement costs and prices 12 to 24 months ago).  We would season the payments for the rentor to make the underlying debt instrument (Investor's loan and author's profit) saleable on the open market.  

Call or email with any questions.

David T.

Scottsdale, Arizona

602-339-1144