123Capital Partners, LLC

Research. Resources. Solutions. 

The market for flipping bank owned properties  

REO inventory holdings by banks are soaring. The melt down of the lending industry and crash of the housing market provide an exceptional opportunity for the savvy real estate investor to flip bank owned homes.

The interest in obtaining “bargain properties” is extremely high which is evidenced by the success of websites like realtytrac.com or foreclosures.com.

Buyers interested in purchasing REOs can be categorized as

• investors (who want to rent the home to tenants or resell offering rent to own or lease-purchase) and 
• buyers that want to occupy the home themselves (occupant buyers). 

Both buyer groups generally lack the know how to successfully purchase homes at a sufficient discount and finance the transaction with little or no money down.

This creates a niche market with virtually no competition since other real estate investors don’t have access to the methods and resources we can provide.

Challenges in buying and selling REO properties

In order to be able to flip bank owned properties (REOs) you must be able to overcome a number of seemingly insurmountable obstacles.

Banks don’t allow you to buy their REOs unless you buy them with your own funds or approved loans. They don’t allow a typical double closing where you would use the funds of your end-buyer. Title needs to be in your name, even if it is only for a few hours or days.

On the other hand, lenders for your buyers have seasoning requirements for title and value. Most lenders require that you own a property for 12 months before you resell.

The 123 Capital Partners solution for flipping REO properties

We have worked hard to develop a system that overcomes all the hurdles mentioned above.

Our system provides you with a method to flip REO properties by using transactional financing to get title in your name before flipping (reselling) the home to your buyer.

We will disclose a financing method which covers up to 100% of the purchase price for buyers. This method overcomes the lender seasoning problems mentioned before.

The extraordinary margins allow for aggressive marketing strategies offering wholesale buyers/investors and occupant buyers 20% or more discount to market value. The profit margins are so high that you can even pay buyers' closing costs.

You don't need cash or credit for REO flipping transactions with the 123 Capital Partners System.

You can - of course - also buy bank owned properties for yourself at even higher discounts and rent these homes to tenants (also rent to own, lease option, resell at full market value with a wrap mortgage etc.).

How to profit...

Sample cost and profit projection (for illustration purposes only):

REO Property purchased at $220,000 (55% of appraised value) and resold at 80% of the $400,000 appraised value (with 65% LTV first lien and 15% second) providing a gross spread of 25% ($100,000). The buyer receives a 20% discount.

Costs for transactional and short term financing points plus costs for the double closing are estimated to be a total of 6.6% of appraised value (100%), amounting to $26,400.

That leaves a net spread of 18.4% ($73,600). A REO purchased at 50% discount would create a net spread of more than 22%. (Is is obvious that even a property purchased at 60% of market value or more could be flipped profitably.)

123 Capital Partner Network members may choose to work with their own resources and get 100% of the profits.

When 123 Capital Partner provides the financing resources and is involved in the transaction, network members receive between 60% (Level 1) and 70-90% (Levels 2-4) of the net spread on all REO transactions.

Just take a second and imagine what kind of profits you could generate when you turn 10 deals or more per month.

Is this for real?

»Mathias Pruestel [123 Capital Partners, LLC] is a magnet for success. He has proven himself to me as an innovative creator in the realm of genius as a real estate investor. His knowledge of the marketplaces, credit, lending, real estate law, and title are professional. Beyond these statements, Mathias has an exceedingly high level of integrity that is rarely found in business. And that, to me, means more than anything else.«

David Peters-Schram, Mortgage and Credit Expert, Glendale, CA, acclaimed author of "How Credit REALLY Works", with radio show guest speaker appearances across the nation with millions of listeners.

Here’s what you get…

We provide

1. Password protected members' only site with the complete 123 Capital Partners System 
2. Links and contact information for REO asset management companies 
3. Links and contact information for REO brokers 
4. The method to use transaction funding sources for double closings 
5. The method to finance your buyers up to 100% without triggering lender seasoning issues 
6. Optional access to the national website for wholesale/investor and occupant buyer leads 
7. Optional database management system access for buyer information, applications, submissions to lenders and much more 
8. Personal help for your deals with phone, email and fax support 
9. The newest research in "REO flipping" methods and funding sources  

How to get started...

In order to participate in this program you must qualify as an experienced real estate investor or professional. We will provide full support for this program but will not teach “newbies”. You will be required to sign a Non-Disclosure, Confidentiality and Non-Circumvent Agreement.

Level 1

The lifetime membership fee is $1,997 (with no additional monthly fees)

Alternatively the Magix Professional Network membership is available for 10 monthly payments of $347.

 

Should you need to make alternative payment arrangements (other than using PayPal) please email us.

To request information for Levels 2-4 please provide your name and complete contact information as well as your estimated transaction volume.

 Please feel free to email me with any questions you may have!

Here's to your success!

P.S. This system also works with Builder Close Outs, Short Sales and other high discount transactions.

This web publication is intended to provide accurate and authoritative information with regard to the subject matter covered. It is offered with the understanding that neither the publisher nor the author is engaged in rendering legal, tax or professional services. If legal, tax or other expert assistance is required, the services of a competent professional should be sought.  Performance disclaimer as required by law: Your earnings will depend totally on how you apply the knowledge and information we provide and your own efforts. We make no statement or projection as to the amount of money, if any, you will make with this business opportunity. All terms and conditions are subject to change without prior notification.