Saving pre-forclosure property and owners equity.

[Lance Hulsey]

Investment Info:

Single-family residence note investment investment in Gloucester.

Purchase price: $560,000
Cash invested: $160,000

So we did not purchase the house but took over paying the bank note that was in arrears. The amount I posted as sale price was what was remaining owed on note. Our team saved this house that was in pre-foreclosure. Fixed it up and now pending sale. Saving the owner their equity from losing all in a bank foreclosure and saving their credit as well.

What made you interested in investing in this type of deal?

This was someone we knew who needed our help saving an investment property that got away from them. We were able to come in and save the house from foreclosure. We cleaned the property up, worked with the city to get it all legal and put it on the market for sale. We are now pending.

How did you find this deal and how did you negotiate it?

Through one of our agents at our Brokerage.

How did you finance this deal?

Cash.

How did you add value to the deal?

We have a specific model to save houses with strict underwriting criteria. If the deal does not make sense, we move on to ones that do.

What was the outcome?

We saved the owners from losing the house and save their credit too. The house is pending sale and we will be reimbursed for our expenses and cash outlay and will be paid interest and fees for the service at closing.

Lessons learned? Challenges?

Covid19 really had an impact on our timing since most local government offices were closed. We had to wait months to get resolutions on issues to bring the house up to code for sale. Thankfully the local government agencies were helpful when they could get back to work.