VIP PRIVATE ACCESS
Frequently Asked Questions
Yes… there is a link on the check out page for a monthly payment plan. The payment plan is very reasonable that most anyone can afford.
CP uses 3 documents that allow him to do this. Sales contract, LPOA and special deed. All have legal language giving him the ability to do this. There are a couple of things that allow us to legally manage the rental. First, our sales contract has language in it that the owner/seller is directing the binder fee to give us the buyer an equitable interest in the property. Equitable interest makes you a fractional interest owner of the house. Second, the language in the Limited Power of Attorney that we use allows for the rental of the house and to collect the rental income. Third, we use a land trust. Either myself or my LLC is the Trustee to the property of the Land Trust. The Trustee also has the ability to manage the rental of the house and to collect the rent monies. Please note that according to attorney Greg Boots… Florida is the only state where we can use an LLC to be the Trustee to a Land Trust without having to put up $250K into a registered trust account to be a registered trustee in other states.
CP will tell you as a Realtor that you will make 10x or more money managing the property with the Cash Cow program vs. getting a small one- time commission on the front-end and that’s if you can get the deal done. Ten years ago, CP and his attorney partner were doing 40-60 short sales per month. There is never a guarantee that the bank won’t come back too high on its BPO and you can’t get high enough offers accepted by the bank. I am sure you know this first hand. This is why CP and his attorney came up with the Cash Cow program. Also, you have a contract to represent the seller and not the bank. Your “duty” is with the seller and never the bank. Your seller has an adversarial relationship in a law suit with their bank/lender. CP’s attorney would tell you never to blur those lines and reach across the table to shake hands with the opposition to your client the seller.
Also, CP is not an attorney. Now… if you do this the right way, you will make much more money with the Cash Cow program and so will your client the homeowner. As a Realtor, you have a fiduciary responsibility to your client the homeowner seller. The bank/lender won’t allow your client the homeowner seller to make a dime selling as a short sale. So what is in your client’s best interest? Is the short sale better or is the Cash Cow better for your client? That is the short answer. The long answer is this. Do you represent the bank or do you represent the homeowner? You represent the owner. You have a signed contract with the owner. You do not have a signed contract representing the bank. Your client is in an adversarial relationship in a law suit with their lender. Because you represent contractually the borrower homeowner, your opposition is also your client’s opponent as well. You have a fiduciary responsibility to the homeowner your client and no duty at all to the bank because you do not have a contract to represent the bank. If you did… that would be a conflict of interest with your client the homeowner. Many Realtors have gotten themselves into hot water when they have crossed the aisle to shake hands with the enemy/the bank and found themselves in bed with the bank at the expense of their client the homeowner. There have been many E&O insurance payouts to homeowners from Realtors crossing the aisle thinking they have some sort of “DUTY” to the lender or the lenders legal counsel. Please be very careful here in your thinking and position for what is called “DUTY”. This is why I feel and so does my real estate attorney colleague feel the same way and that is a short sale is usually not in the best interest for the homeowner. I have some questions for you. How much money will the bank allow the homeowner make on a short sale? It is ZERO! Does the homeowner have the right to rent out his house and be in default at the same time? He sure does as he/she is still the legal owner of the house until it is lost to the foreclosure auction/sale or the bank petitions the judge/court to have the rental monies deposited into the courts registry so that the bank can be awarded these profits once the judges ruling is finalized with the Lis Pendens law suit. This scenario with opposing counsel putting in a motion for rental monies to be deposited into the court system is huge remote possibility as 99.9% of the time, the bank is not aware of the house being rented and also most of the time opposing counsel won’t put that much time and effort into the law suit towards your client as their plates are already too full and opposing counsel is not getting paid extra monies to do this and basically work for the bank for free. Your client will actually make thousands of dollars with the Cash Cow program. In reality… the Cash Cow program should be your first recommendation for your client the homeowner as the Cash Cow program is financially better for him than going the short sale route. The short sale route should be his plan B or plan C in CP’s opinion. It is hard for Realtors to wrap their minds around this and put their clients best interest in front of the Realtors interest as the Realtor won’t get a commission on the front end of a short sale closing going the Cash Cow avenue… However… with CP’s Cash Cow profit sharing model, the Realtor will make much more money with the Cash Cow program in the long run. For all you Realtors, please put your clients best interest before your own and we promise… you will make much more money in the long run with the Cash Cow program if you do it the right way and you will put thousands of dollars in your homeowner/clients pocket too.
The bank picks up paying the property taxes and the homeowners insurance. The bank will pick up paying the taxes and the homeowners insurance. The bank wants to protect its interest and will do what is called “Forced Placed” insurance in the same way they would do this if the borrower failed to keep their own insurance policy paid up if they did not have PITI all in one payment. Also when it comes to the property taxes, the bank will keep those paid up as well or they risk losing the house to a tax deed sale. Tax sales will trump the first place mortgage on a property. This is why lenders will 99% of the time make the tax payments on the house.
CP’s real estate attorney says this can be done in all states and PR. However, there are some states that don’t have a lot of homes in default. We have Realtor friend’s in Alaska and defaulted pre-foreclosure homes and short sales are not a big deal there. Very few people in default in Alaska. CP has done deals in Montana, Idaho and Washington and even Wyoming. But he doesn’t see much in North and South Dakota. Maybe in Rapid City?? CP likes to go fishing where the most fish are biting. The sand states of California, Nevada, Arizona and Florida. From Hawaii to Puerto Rico… If he were you… he would snatch them up even if a deal popped up in Alaska or in Wall Drug, SD.
The best houses are; behind on payments, vacant, good condition, has all the appliances, rents preferred at $2000 or more per month, not having an auction date tomorrow and owners are cooperative. CP does have student/clients in rural areas of the country that do not have higher rental income houses and they rent near the $1000 per month range as well. CP prefers higher rents. Homes must be vacant or the owner already has plans to move. CP prefers nicer homes that will rent for at least $2000 per month. He has taken on homes for much less in rent. The same amount of time it takes for a $850 rental takes the same for a $3500 or $5500 per month rental. He looks for gated communities in his home town and drives for dollars. When he is in the states… he has certain farming areas he personally knows and will farm those areas by driving and also using Realtors to locate prospect houses for what he is looking for. He prefers to stay out of what he calls the “War Zones” and low income houses.
CP would go to Zillow and refine his search to the pre-foreclosure blue dots. He would pick a zip code with nicer houses. He would drive for dollars. Also, call and network with Realtors and Probate attorneys. Provided that you have your sales packages already made up and business cards in hand… he would go to Zillow and refine his search to the pre-foreclosure blue dots. He would pick a zip code with nicer houses. He would write those addresses down and map out his route to drive to each one of those houses to find the vacant ones. While he is driving, he will also look for active Realtor signs in these neighborhoods and will be calling these Realtors to prospect them while he is cruising the farming area neighborhoods. Here are some other things he will do that are easy great lead sources. He will find mailmen… mail carriers and will give them a $5 gift card to Starbucks or Dunkin Donuts and leave them his biz card. He will ask them to be a bird dog and text him leads of vacant houses in the farming area. He will pay them $500 for every lead that turns into a deal. He also does this with his UPS drivers and FedEx drivers as well. Another lead source is lawn care companies that have been sub-contracted by property preservation companies that have been hired by the bank to take care of vacant/abandoned houses. He will get on the phone and call the top 20 lawn care companies in his town and network with them to get leads and also pay them $500 for each lead that turns into a deal.
The longest one CP has had has been 11 years. July of 2007 until lost at auction on June 14, 2018. It also depends on when he picks up the house in the foreclosure process. The sooner in the process the longer he can keep them. Rule of thumb is 3-7 years. That’s why CP calls it a “Cash Cow”. If we are in the second phase of the foreclosure process of what CP calls the “Auction Blocking” phase… we have 8-10 bullets to fire to block auctions. Each time an auction is blocked, it gets us another 5-8 months on the low end to 9-15 months on the high end to Cash Cow the house. You do the math.
No, it is not too late. CP and his attorneys have blocked auctions the day of. He actually prefers a week before an auction but has blocked many auctions with just a 2-3 days before the sale date.
Typically, no. CP will offer an incentive and give away ½ month free or more in free rent in lieu of repairs and clean up. Example: If they begin on day one of the month, the next rent payment won’t be due until the 15th of the following month. CP currently has a house that needs a ton of work… I mean a lot. He has marketed the house and gave away 2 months free. This means they pay first and last to get in on day one. The next monthly payment is not due for 90 days. Within 3 days he had 5 people inquire and pay for the background and credit checks. He found his tenant. From the time he placed his Craig’s list and FB Market Place Ads… the new tenant moved in within 8 days and gladly wanted to put in the time and elbow grease to clean up and paint to get this great deal. CP would rather give away time… weeks or months than be out of pocket cash. It is a win/win/win for the tenant, homeowner and CP.
Normally CP won’t replace appliances. He will advertise that specific appliances are missing and give away free weeks in lieu of repairs, clean up and replacing missing appliances etc...
In reality, it is the borrower that was “used/abused” and taken advantage of by the banks. The banks were never the victims in the foreclosure bubble bursting. The whole scheme was based on Mortgage Backed Securities on Wall Street and selling these “Swaps”. Remember the movie, The Big Short? The banks have been made whole after the first 90 days of default with the insurance pay out of PMI… Private Mortgage Insurance. There are also more insurance pay outs to the lenders trusts called Credit Default Insurance/Credit Default “Swap” Insurance. Lastly, the bank resells the house at auction, short sale or an REO. The banks get made whole multiple times. Remember that this foreclosure crisis was engineered to happen by the banks and some Wall Street “gurus” years before the Boom and the Bust. This was designed and created for banks to cash in and make Billions. It is the “Insurance” companies that backed the loans that took the big hit financially. Lehman Brothers to Goldman Sachs… they no longer exist.
Again, the banks have been made whole multiple times just on one defaulted mortgage. CP doesn’t feel one bit sorry for the banks. First, PMI has been forced to pay by the homeowner but the borrower is not the beneficiary to the insurance policy that they paid for. Hello… this speaks volumes of smelling a dead rat right there. This means when the borrower defaults after 90 days, the bank gets to cash in on the PMI policy and got made whole for the most part. This is why banks won’t do a Loan Modification before 90 days but required the borrower to fall behind 91 days before the borrower could apply for a Loan Mod. Also, on each trust the note and mortgage gets placed into, the individual trusts have what is called “Credit Default Swap Insurance” on top of the banks PMI. This means the trust gets paid another insurance pay out and made whole again. Some notes and mortgages are wrapped up into multiple trusts. Each trust has its own “Insurance” policy. This means the bank gets made whole multiple times and paid off 3-5 times with PMI and multiple policies for each trust with Credit Default Swap Insurance. Now the icing on the cake is that the bank gets made whole multiple times with the insurance payouts and then an additional time when it sells the property and makes another profit on the short sale or auction or when it sells as an REO.
This is why the banks bundled these notes and mortgages on Wall Street and sold them as Insurance Backed Mortgages. They were “banking” on the borrower to default. The real tragedy here is that the borrower is forced to pay the PMI but the bank/lender is listed as the beneficiary to the insurance policy that the borrower is forced to pay. We are not taking advantage of the bank but rather we are empowering the homeowner to make the best of a bad situation and put some cash in their pockets.
Also… we are bettering the neighborhood by keeping a house occupied and maintained. We are helping the housing market for the neighborhood as well to keep values higher. Vacant abandoned houses pull the market value down in those neighborhoods. But most of all, we are helping a hurting homeowner that has lost his home and is not making a dime on his house. Now we are putting 100’s or even $1000’s of dollars in his/her pocket each month. We are helping them make a car payment, utilities payments, groceries to kids dance lessons.
Remember that it was Bank of America who was sued by AIG insurance for double and triple and quadruple dipping on insurance payouts. This was some major fraud. However, no BOA officer went to prison. How can this be? No one went to prison. BOA settled the first of many law suits for $22 Billion dollars. The first of many by BOA and many other big banks settled as well. Again, your question needs to be… Didn’t the homeowner get taken advantage of by the banks in this pre-planned foreclosure boom? BOA didn’t go to trial. BOA settled out of court and AIG dropped the law suit. This was the first of many “multi-billion” dollar settlements BOA had and all the other big banks too. The real answer to your question am I hurting or taking advantage of the banks?? H, E, double hockey sticks No!!! Now after you read this… your perspective should change 180 degrees.
The homeowner benefits making money on a monthly basis… thousands of dollars over the next few months and years. In a short sale or just walking away from the house puts zero dollars in the homeowner’s pocket.
We are taking a non performing asset of an abandoned house for the most part and creating a monthly income stream. For whatever reason, the homeowner did not do this himself. We are taking care of everything for the homeowner for the rental and we profit share with the homeowner. The homeowner otherwise because of his in-action to create his own monthly profit stream would not have made a dime and would have let the bank walk all over the top of him without putting up a fight. The homeowner now because of us has a fighting chance and gets to put some serious cash in their pockets as well.
There is never a cost or a fee to the homeowner… Period! Legally, our attorney says there can’t be a fee charged to the homeowner.
Similar question… I will add a few more things here… the homeowner with the Cash Cow program can make a profit and put cash in his pocket and also from the profits he can get legal attorney fees paid. The homeowner can’t be out of pocket a dime. The homeowner does nothing to manage the rental. He only has to worry about cashing his/her check each month. The homeowner also has legal representation paid for by the rental profits to oppose the bank and even expose bank fraud as well as to look at other options. Possibly a settlement rather than a short sale. Sometimes Coach Pat will do a reinstatement, forbearance and a recast of back payments bringing the account to a “current” status and then look at doing what is called a “Sub-to”. There are many benefits to the homeowner rather than giving up and walking away.
The homeowner has the opportunity to make a profit and put cash in his pocket and also from the profits they will get legal attorney fees paid. The homeowner is never out of pocket any monies. The homeowner has two choices. He can give up and walk away without putting up a fight and let the bank take the house at auction or he can go under contract with you to put thousands of dollars in his/her pocket over months and years. Without taking a shot…the borrower will never make a goal and hit the back of the net. Wayne Gretzky the great NHL Hockey players famous quote says, “You will miss 100% of the shots you don’t take”.
FYI… We, meaning CP and also his attorney have been able to get 5 houses free and clear by exposing bank fraud and getting the banks to release their lien off the property. We would have never gotten a release of lien had the homeowner given up and walked away. That is why the homeowner would do the Cash Cow program. What does he/she have to lose? They have already chosen to walk away and give up and get nothing.
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