buy 100 bank foreclosures
Buy 100 Bank Foreclosures
Our base of operations is Vero Beach, Florida and we will expand our area from that point forward. Florida ranks sixth in the nation with approx. 25,000 foreclosures of which are deemed upside down, this means that the banks mortgage is more than the fair market value of the home. Once the bank takes possession of these homes the majority are in disrepair, in some cases major repairs.
The bank then places the home on the market with a “Short Sale”, buyers come in and pay a discounted rate, most buyers are home speculators, some rare cases are actual families buying the property to repair and live in.
Our objective is to buy these homes from the banks as a 501c-3 nonprofit organization, repair them using our fellow veterans and then house up to four homeless veterans for a period of three months. In that three month period we find the veteran permanent housing either under our control or through other sources.
How do we do this? Well we take old fashioned capitalism, couple it or marry it to our charitable 501 c3 and give the banks a substantial writeoff. We take the value of the home, or what it would be valued at with all repairs completed, simple appraisal.
The second step is the bank which for months and in a lot of cases had zero payments for years, paying taxes, paying insurance, the losses continue even after they get possession, keep in mind banks rarely renovate properties, they sell them at a major loss i.e. speculators. Our idea is to pay them more than they would ever receive from a speculator in cash, we pay them cash + more, the more is a complete writeoff to the banks.
The next step is receiving donations for acquisition and repairs of said homes thus once completed and ready to house our needy veterans. We now have a home that is free and clear of any debt.
The next step is receiving governments grants, foundational grants or veteran benefits for veterans that are homeless or about to be homeless. We are expert on these types of programs. Once the income approach is activated using the programs a home with three bedrooms will have approx. $4000 of monthly income.
The final step is to take these homes that have substantial equity and proven income and pledge those to a bank of our choice and borrow 75% of the equity and all moneys borrowed go into a fund for building a Veteran ALF, (Assisted Living) which is explained in our chapter: Borrow $10 million dollars.