Idea--please tell me why this wouldn't work!
My idea is to advertise a mortgage-relief service to qualified distressed homeowners. My ad directs the homeowner to a website where they enter their information including their current mortgage balance. I receive this information and then get a quick opinion on the FMV of the home from a realtor. If the homeowner has at least 30 percent equity, I offer to purchase the home for the mortgage balance. I either get the lender to allow me to assume the payments, or get a hard money loan based on the 30% equity. If the home has greater than 30% equity, I offer the person a second mortgage for some portion of the equity. The homeowner gets free of their mortgage plus cash from the second mortgage. I get the property with an instant 30% equity that I immediately sell, pay off the first and second mortgages, or alternatively rent it out. If for some reason I could not get the financing to close the deal out myself, I could wholesale it to another investor could pay all cash for it.
I am new and don't know anything other than what I have read on these sites. Is this a stupid idea? Why wouldn't something like this work? If it doesn't work the way I've laid it out, what would it take to make it work? Thanks for your thoughts!