A Property Flip on Mac Donough Street

A funny thing happened on the way to buying this turn of the century row house in Bedford Stuyvesant.

Well, at least one buyer won’t find it funny when they learn they purchased their home on Mac Donough Street in a property flip.

If that isn’t bad enough … it gets worst.

They paid $230,000 more than the owner they purchased it from.

(and that owner closed on their purchase just 4 months before they sold it to them)

Could this home buyer have bought this property in Brownstone Brooklyn for less in a short sale?

Looking for the right deal

If you’re looking to buy your first home in a Brownstone Brooklyn neighborhood, you’ve already got enough on your plate.

Between attending open houses, strolling through neighborhood blocks and searching through property listings online, the last thing on your mind is under what circumstance any home is being sold to you.

It’s already enough to worry about making the right offer, going over a home inspector’s report and finding a lender to get a mortgage.

All you want is a deal that’s affordable, seems fair and passes muster with your attorney in a contract.

Too good to be true

In Brooklyn neighborhoods like Bedford Stuyvesant, where foreclosures make up a large percentage of homes in the shadow inventory of properties available for sale, it’s hard to know if you’re getting the right deal.

For instance, let’s take a look at the sale of the row house on Mac Donough Street.

Could the home buyer who purchased it for $515,000 have known the seller had only purchased it just 4 months prior for $285,000?

Here’s a hint: If the attorney noticed the seller on contract is a corporation, she may have her suspicions that her client might be buying the property at a significant mark up.

And if they’re savvy enough to do some research without ordering a title report, the attorney would have learned the following:

Did they buy in a short sale?

When they made an offer to the owner that was accepted, RDMS was able to get in contract to buy this turn of the century row house in Bedford Stuyvesant.

I’m also sure once they were in contract, they listed the property immediately for sale and moved out anyone living in the house (just click on the link to see how much they listed it for).

After negotiating directly with the lender with the owner’s cooperation, they were able to get Option One Mortgage Corp to accept less to settle the outstanding mortgage balance owed from the $552,000 borrowed.

In return for the owner’s cooperation, RDMS made sure the lender issued a letter of satisfaction that would result in debt forgiveness for the owner.

In short, they bought it from the owner in a lender approved short sale.

Where can I get that deal

The same opportunities are available to you that institutional investors are taking advantage of today.

Most homeowners facing foreclosure in Brooklyn don’t have the wherewithal to walk away from their mortgage.

Investors are keenly aware of that and provide the kind of support that’s well within your ability to do as a first time home buyer.

What you don’t have that real estate investors do is the research capabilities and deal making strategies that have them winning all the way to the bank … until now.

Let’s make a deal

Wouldn’t you want to buy your new home below market value?

Couldn’t the $50k, $75k or even $125k in found equity value do more for you than becoming profits earned by an investor who engineered the flip?

Are you ready to get the deal that lets you own your piece of Brownstone Brooklyn below market value?

Then add your email address below to get your copy of our foreclosure short sale e-book we’re making available FREE.

You won’t get a better deal anywhere else!

Unfortunately, the clock ran out and the offer is no longer available this year.

We’re giving some thought to making it available again next year FREE in January 2012.

Head over to Buying Brooklyn and add your email to the list for the launch and you’ll also be eligible to receive a copy of Buy Right the First Time – Seven Steps to Buying Your New Home in a Short Sale Successfully.