Taken From JDnews.comThis is a example of what we would be going after.
AMENDED NOTICE OF FORECLOSURE SALE NORTH CAROLINA, ONSLOW COUNTY 11
SP 760 Under and by virtue of a Power of Sale contained in that
certain Deed of Trust executed by VICTOR STEVEN GATEWOOD and
Annette Victoria Gatewood to Frank W. Erwin, Trustee(s), which was
dated October 28, 1997 and recorded on November 3, 1997 in Book
1408 at Page 199, Onslow County Registry, North Carolina. Default
having been made of the note thereby secured by the said Deed of
Trust and the undersigned, Trustee Services of Carolina, LLC,
having been substituted as Trustee in said Deed of Trust, and the
holder of the note evidencing said default having directed that the
Deed of Trust be foreclosed, the undersigned Substitute Trustee
will offer for sale at the courthouse door of the county courthouse
where the property is located, or the usual and customary location
at the county courthouse for conducting the sale on October 4, 2012
at 10:00AM, and will sell to the highest bidder for cash the
following described property situated in Onslow County, North
Carolina.
9 Westminister Drive, Jacksonville, NC 28540
http://www.zillow.com/homes/9-Westminister-Drive,-Jacksonville,-NC-28540_rb/
Our goal would be to buy this at auction on the court house steps
for Min 35% below tax value.
Tax Value for this house would be 125700.00
Houses in the area selling for 134,000 with same sq. ft. This house
is listed on zillow and is in short sale status.
Inital Strategy To buy houses at acuction on the court house steps Sell these houses for a profit, With the profit pay investors profit and grow the business.
What will be the growth plan? For every houses sold keep part of the money in reserve. When amounts are reached to buy 2 Properties one will be sold and one will be kept as a rental.
Here is how it would work.
Take the Property listed above, with what we know we can assume they paid about 15 years of payments, at 12 months a year. I would value that property at about 75,000 In 97. I gave them a Interest Rate of about 5% total comes out to 144,941.84 for 30 years. Minus the payments they made for 15*12=180 comes out to 72360 paid in. Which leaves there balance of around 73k. The bank may or may not go after the intrest not gained yet. So that could or could not be in the factor. The house is purchased at 35% below market value, we then fix the house enough to be sold "Under V.A. Standards". The Investors are paid 80% of the profit and 20% is put aside for growth. After this process happens so many times and we have enough funds for 2 properties, we will buy 2 properties selling 1 and keeping 1 as a rental. 75% of the rent will be paid as Dividends, 20% will be put aside for repairs and 5% for property handling fees to the real estate company.
Where I got the idea fromWhen I got out of high shool in 2004, I was sitting around my friends house chatting with his father. I knew he was into real estate and just thought he was a well off from sales. He actually only makes around 25k a year as a property manger. But he had been buying homes at auction since he was in his middle 20's. By this point he had around 20 or so rentals. He offered me and his son a job painting his rentals and the rentals for Coldwell Banker. Thats where my first business was born painting rental houses. As I got to know his dad better, He started telling me how he did it, and that was the only real way to make money in this town. Living in Jacksonville, NC has a couple of advantages that other towns don't. A 3 year rotating population, from the United States Marines. The standard Marine is restationed every 3 years, thus making the rental industry in the town a BOOMING business.
My question is would anyone be want to invest in something like this? Never seen anything like this on here before.
Keep posts constructive and on topic please
