Gettin' started...

Gettin' started...

I'm new to the DG community and am trying to hook my first deal. It just so happens that the 4-plex I'm living in has gone into foreclosure. It's currently in the redemption period.

Scenario: Inver Grove Heights,MN. 4-plex (excellent location) w/6 car garage. Current owner owes $380,000. FMV is $260k. Has a 1st and 2nd mortgage. Owes $300k on 1st and $80k on 2nd. He just filed bankruptcy and included the property in the banko. Each unit is currently rented out for $500 per month, utilities included. Before foreclosure hit, each unit was rented out for $900 per month, utilities included. The property is a nice piece but does have a couple downfalls. 1.) Needs a new roof ASAP(not leaking yet). About 4000 sq. ft. 2.) Carpets need to be replaced. 3.) The utilities are outdated and need to be replaced.

I have done my homework on this property and am ready to make a move. I'm just not sure what the best route would be. I personally have really good credit but would not like to use it if at all necessary. Another quick thing, I do KNOW the owners. Just wondering if anybody knows what the best way to go would be?



Try to locate the owners through the county records. Your local county courthouse would have the records. Usually the treasurer's office may mail the tax bill, thus the treasurer, assessor, or the county reocrder should have the owners information. Once you contact the owner, see if they have an interest in doing a short sale with the bank. If all the parties can agree it may be a win-win for all involved. If you end up needing cash, try to locate a partner. As long as the profit margins make sense and it produces a good cash flow, you should have several options to pursue. Good luck with this potential deal. Believe and Achieve! Smiling - Joe


YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures

TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA

Getting the lenders info

A suggestion is to get the lender's info as Joe said and offer about 50% less than the FMV (short sale). The bank may consider that option and counter for a little more if any. You cannot really lose going directly to the bank. God Bless and good luck, go for it.



"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.

Redemption Period

In the case of jay1976 where he is stating a "redemption period" a short sales would not necessarily work.

Redemption period means that the bank already has ownership of the property. The property has gone through the whole foreclosure process and the bank now has an REO. The redemption part means that the previous owner (the person that lost the property) of the property has a period of time in which to redeem the property after the sale at a set or determined amount. Only a few (I believe 5) states do this.

If the property is indeed in redemption you have a couple of options:

1st) Get the information to the previous owners as has be given then ask the owners to sell the redemption rights. You may purchase the rights at a very nominal fee ($100 - $1000). You would do this if their redemption allows for equity. Sellers don’t care because too many of the sellers they have already lost the property.

2nd) Make an offer to the bank just like any other offer. The offer may be asked by the bank to be contingent upon the redemption period (which can last upwards of a year) before you can purchase or they will agree. This would mean you would have to wait. Option one is best then if there is equity.


If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125

Syndicate content