Hi all,
I'm on my phone so this is just a brief overview, ill post more details when I'm at a computer.
The gist of my plan is to form an llc, ("InvestCo") capitalized with either equity or, preferably a line of credit. I would then approach banks with an offer to buy a portfolio of commercial REOs from them at a steep discount to market value. After closing, I would immediately refinance the properties with mortgages, taking out my initial equity investment and pocketing the spread between the loan value and original purchase price. At this point, I've already made money on the deal, but could still hold the properties for cash flow and/or flip them at a future date as a more traditional real estate investment, although this is a secondary benefit and not the focus of the transaction.
Thoughts?
I'm on my phone so this is just a brief overview, ill post more details when I'm at a computer.
The gist of my plan is to form an llc, ("InvestCo") capitalized with either equity or, preferably a line of credit. I would then approach banks with an offer to buy a portfolio of commercial REOs from them at a steep discount to market value. After closing, I would immediately refinance the properties with mortgages, taking out my initial equity investment and pocketing the spread between the loan value and original purchase price. At this point, I've already made money on the deal, but could still hold the properties for cash flow and/or flip them at a future date as a more traditional real estate investment, although this is a secondary benefit and not the focus of the transaction.
Thoughts?
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