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Tom Butler
Tom Butler and The Short Sale Magic program. This
system actually is interesting to me. The term short sale referrers to
paying pennies on the dollar usually to a 2nd mortgage on real estate.
When a home owner for example is going into foreclosure or
pre-foreclosure and has a second mortgage on their home, the bank does
not want the loan to become a non-performing loan. When this happens it
effects the overall amount of money the bank is able to borrow from the
Federal Reserve.
Banks actually make their money buy re-selling
money, in case you didn't know. They borrow it from the Federal Reserve
and then loan it out to the public at a mark up. Banks are really no
different than any other business. The Federal Reserve is just the
wholesaler.
The short sale magic system is a program that
teaches you to make offers, usually to the second mortgage bank to do
two things. The first is for them, the bank, to re-coup some money on a
loan, and secondly, and most importantly to prevent a non-performing
loan which effects their overall position with the Federal Reserve
which decides what they are able to borrow. Wow...
Tom Butler teaches his short sale system like this;
You buy a property that is in pre-foreclosure with $150,000 first
mortgage and a $40,000 second mortgage. Let's say the appraised value
is $195,000. Now, not a great deal but if you negotiate with the second
mortgage bank who is going to lose the whole $40K and have a
non-performing loan, Tom Butler suggest offering them like $1,200.00
and getting the bank to accept the offer. This now creates $43,800 in
instant equity for the new owner. (Shorting the second mortgage) Again,
I am some what interested in this short sale program mainly because it
is a creative way to make money. My friends would say this is
structuring. Just not sure how consistently it would work.
In my opinion I would not recommend getting to
quickly involved in focusing primarily on Tom Butler and the Short Sale
Magic Program as your main strategy. If you plan on getting into real
estate or maybe you already are involved I would proceed with caution.
It is what I have called in other real estate program reviews a monster
purchase.
This program sells for $39.00 and is a compilation of the short sale magic program book and a couple of free gift CDs.
I have found something that can help you
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am biased of course so make your own decisions but this is a good
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