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Buying Lien at a Discount = $2,500 Extra Profit

by W. Perry Rollins   

I just closed on a 1.23 acre parcel that I have been negotiating to buy for the last five or six weeks. The owner had agreed to a price of $8,000 ($2,000 down and $250 per month for 24 months with 0% interest, which Ernest Tew helped me structure).

When the title search showed up a $12,700 judgment against the property my heart sank. Ernest suggested that I try to buy the judgment. I followed his advice and was able to satisfy the judgment for $4,500, paid the seller $1,000, and saved $2,500 all because of Ernest's suggestion.

I love the win-win-win experience I just had. The judgment holder was happy to finally get some money, after six years, from someone on Social Security disability who had no other assets. The seller was happy because he effectively sold the property for $13,700 and cleared the judgment from his credit. And I am happy to get a $10,000 piece of property for $5,500.

 
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