Real Estate Profit Strategies
1. Cash for keys
- Buy from legal owner(s)
- Buy from probate personal rep.
2. Bid at auction
- Be high bidder
- Straddle the sale (Control the surplus funds, too)
3. Lend and revert
- Make a loan then foreclose
- Make a loan to trustee of trust then foreclose
- Make loan to probate P.R. then foreclose
4. Buy assignment of heirs’ interest in estate
- Buy controlling interests from heirs
- Clear all heirs’ claims to estate to liberate or free-up distributive share claims
- Record imperfect TD from heirs on PIQ, then collect overbid
5. Jr. Beneficiary buy-out
- Purchase from beneficiary and foreclose
- Purchase and wait
- Record imperfect TD from (heirs) on PIQ, then collect overbid
6. Surplus funds
- Purchase from foreclosed out owner for recovery % or $ discount
- Pursue court held funds held in “interpleader” accounts
7. Chilled T/S Advance Method
- Foreclose on Jr. TD and advance or payoff Sr. loans morning of sale
- Buy Senior TD, advance big bucks for “repairs” if PIQ has major deferred maintenance or red-tagged, then foreclose on total debt
8. Adverse Possession
- Perform the required actions for five (5) years then sue to Quiet Title
- Fix, rent & leave title “as is”
- Purchase defect interest in property then “tack on” to their time
- Record Mechanics Lien to another entity for cost of improvements
- Record wild deed to the _____ trust for claim of title but no transfer tax and attach explanation letter to P.C.O.R.
9. Purchase Involuntary Debt (i.e., Judgments)
- Buy discounted judgment lien (after BK period) and wait
- Purchase attorney liens for probate fees
- Record Abstract of Judgment
- Foreclose judicially after determining Homestead Exemption
- Buy debt from Nursing Home, etc. perfect lien, then foreclosure
10. Buy lien from City or County
- Buy abatement liens
- Foreclose on lien judicially
- Protect sale by straddling with claim for surplus funds
- Attempt to control surplus funds resulting from Sheriff’s sale
11. Mechanics lien approach
- Purchase Mechanics Lien and foreclose judicially
- Create a mechanics lien and foreclose judicially
- Have contractor perform rehab, you as trustee of adverse possessor’s trust sign for repairs, record mechanics lien, assign and foreclose judicially.
12. Performance Trust Deed approach
- Use Option and Performance TD then foreclose if no performance
13. Purchase partial interest(s)
- Acquire partial interest of less than 100% in property then sue to Quiet Title
- “Partner Up” by purchasing a fractional interest from ALL owners, hold 100% of interest in a THT, rent property to other owners (who are now beneficiaries) until future ripens, then sell and distribute.