Posted by J. on July 08, 2003 at 01:43:51:

Candice, I am interested in using nodiscount method as a tool to convince banks and sellers to work with me. If you don’t mind sharing what is your average profit per transaction after advertising, gambits, miscelaneous fees, etc…

I have had success with the system when used to sell or flip real estate but have not tried short selling. Anything you can share would be greatly appreciated.

I can also be reached privately at

Thanks for your help.


Posted by Newbie on July 05, 2003 at 21:24:26:

I?m unemployed right now, and living off unemployment which is about to run out. I?ve bought a lease option and short sale course because this is what I want to specialize in…in my area. I?m mainly interested in generating some fast cash by assigning these deals so that I won?t remain in the middle. I know how to assign a lease option deal, but how do I assign a short sale deal? The course that I have doesn?t explain how to assign a short sale deal?It mainly explains how to recognize a deal that would be a candidate for a short sale, get the lender to accept a discount and package the deal to get is approved by the lender for a short sale. The problem is I have bad credit and no cash to makeup the arrears when dealing with lenders. How do I find partners that would buy my short sale contracts?


Stick with L/O deals… - Posted by JT-IN

Posted by JT-IN on July 06, 2003 at 16:33:05:


Short sales are not to be conducted as you suggest. If you were to do anything but misrepresent yourself to a Lender, they would turn you down flat, on terms as you suggest. They will NOT agree to an “if-come” deal of a short sale, and then have you “shopping for pockets” to complete the deal… It simply doesn’t work that way.

Short Sales are generally based upon a relatively few days of time horizon for closing. It is imperative that the buyer of a short sale have funding firwst, before negotiating the deal. Anything else is simply a recipe for bad results.

In a L/O deal, where the Seller knows in advance that you will be searching for another party to perform on the T/B side of the equation, or at least by contract you have the right to do so without further disclosure, so be it… This just doesn’t cut it with a Lender agreeing to a discount.

Just the way that I view things…


Try this and see if it works for you… - Posted by Candice

Posted by Candice on July 06, 2003 at 15:24:36:

Negotiate with bank/seller for a profit. Then use something like how to sell your house in 5 days or the nodiscount method to sell quickly. Find a buyer and sign contract. Charge original seller a contract cancellation fee to be paid out of closing.

No need to double close, assign, or worry about title seasoning. If your budget allows give nodiscount a try. They teach you how to get paid with a cancellation fee as well as sell quickly in 15 days. If it don’t sell then move on.



Posted by IB (NJ) on July 06, 2003 at 13:42:16:

Be careful when you post questions asking for the advice from ‘Pros’. Only a few selected investors among us (I’m not one of them) consider ourselves to be pros. You may have people who can answer your question but decide not to because they’re not ‘Pros’.

Now on to your question. I’m working for my first short sale now although I do have a friend who’s pretty experienced with them. You simply draw up an assignable contract between you and the seller and have it reflect the purchase price you wish for the bank to agree to. After you get an agreement from the bank in writing that they have accepted your short sale offer, you simply assign your contract to the new buyer for a fee. It is crucial that you make sure your buyer can close on time. It is my understanding that the bank doesn’t really care who’s buying as long as the mortgage debt is settled.


Posted by Kristine-CA on July 06, 2003 at 02:29:13:

Newbie: I’m not a short sale expert. But you may find it difficult to assign short sale deals because the bank will most likely use their own contract which will not allow assignments. Also, unless the bank uses a closing agent of your choice, you may have trouble doing a double close as well.

Where a short sale/assignment exit might work is with private lenders and sellers who carried back paper. You will most likely be able to negotiate the contract on your terms. And more easily assign to or double close with your buyer.

Sincerely, Kristine

Just what Short Sellers Do NOT NEED - Posted by JT-IN

Posted by JT-IN on July 06, 2003 at 16:25:40:

Is Newbie here, defaulting on a negotiated agreement with a Lender, for a successful short sale amount. This is pretty poor form, (not negotiating in good faith), to pledge to accept a short sale amount with a promise to close in x of days, and default because you never had the funds in the first place.

No wonder short selling is becoming more difficult, if many folks are negotiating such a deal, then letting it fall thru the cracks…

Just the way that I view things…


It was my understanding that - Posted by rm

Posted by rm on July 07, 2003 at 20:03:03:

the banks would not accept an assignable contract?

Has your experience been different?

Re: Just what Short Sellers Do NOT NEED - Posted by Candice

Posted by Candice on July 06, 2003 at 19:45:44:

And how many re investors actually have the money to pay off a short sale? My guess is too few. I don’t see a problem in trying to help out banks rid of their problems especially if you can do it in 5-15 days. So what if you might fail since they’ve only waited a few days to find out. Explain to the banks what you’re doing and they’ll see more benefits
than short sale subject to financing mumbo jumbo in 60-90 days.

Just my two cents.

Re: It was my understanding that - Posted by IB (NJ)

Posted by IB (NJ) on July 07, 2003 at 22:55:50:

This is usually the case when you’re buying a bank-owned property (REO). I’ve never heard this being a problem with a short sale.

Re: Just what Short Sellers Do NOT NEED - Posted by Redline

Posted by Redline on July 07, 2003 at 12:42:36:

If you call yourself an investor and you can’t raise $100k+ on short notice to buy a good deal then you’re not REALLY an investor you just think you are.


Re: Just what Short Sellers Do NOT NEED - Posted by JT-IN

Posted by JT-IN on July 06, 2003 at 19:58:13:


An effective Short Sale is NOT ever negotiated with a Bank/lender using this technique… “short sale subject to financing mumbo jumbo in 60-90 days”

Banks will accept terms of a short sale in a small percentage of cases, but only when there is NO financing contingency; period. They will only commit when the funds are ready, willing and able…

Not sure how many RE investors have the funds to payoff a short sale, but the ones that I know who successfully negotiate short sales, either have the funds or the LOC to perform. There is NO bluffing the Bank/Lender that you have them or will find them. If they sense this, that is the end of the call and your credibility with the Lender.

Just the way that I view things…


So don’t bluff the banks - Posted by Candice

Posted by Candice on July 06, 2003 at 23:31:59:

tell them the truth. Explain to them what your plans are. Your claim that banks wont’ accept anything but cash offers on short sales is far from the truth. I’ve seen investors negotiated contigencies on terms, refinancing, loan assumptions, and sale subject to clauses at agreed upon # of days.

Cash is King. But Cash isn’t always necessary.
It depends what the bank wants.

Just my two cents.

Re: So don’t bluff the banks - Posted by Eric C

Posted by Eric C on July 08, 2003 at 13:48:01:

Hi Candice -

Congrats on your bank deals.

For years, I’ve made the focus of my business banks (lenders of all types, really) and corporations.

I don’t doubt that it’s possible (unusual, but possible) for an investor to negotiate great terms (and deals)from “sophisticated” parties. After all, I’ve done it for a couple of decades now.

At the same time, I also have to say that the world of lenders is pretty small (they communicate with each other constantly)and while competition is relatively fierce, they definitely see themselves on one side of the table and all investors on the other. Get my drift?

Defaulting on purchases or terms will make for a very short career. Word gets around. Quick.

So, I agree – don’t bluff the banks. In fact, I never bluff. Period.

A lot of my competition thinks along the same lines as you do. Negotiate in good faith, get great terms, and move on.

I work a little differently. In almost every case, I talk directly with the “authority official of the day” and usually leave an offer on his (her) desk along with a cashier’s check for the entire amount of that offer.Sometimes, if I think the negotiations will be protracted, I’ll open an account (talking about compensating balances works well at this point)for a nice round number (six figures or so).

You can see where my offers require less thought on their part, can’t you? Hmmm, can he or can’t he? Guess so, since the moneys already here. Keeps the mumbling to a minimum and allows deals to move forward very quickly.

Here’s my point: if you have developed a good working relationship with a lender or two, don’t screw it up by not making good on your end of the deal(s).

There will always be a guy like me just waiting for the corporate types to get tired of proposals falling through.

Take care,

Eric C

PS - one more thing – about that 21 day period? I guarantee I’ll steal that thing out from under you if you’re not careful. That’s entirely too long if your competition is using cash. Be careful.

And what banks want? They want liquidity. They want to put this deal (the bad one) behind them ASAP. But overall, what they most want is not to look foolish. Appearing foolish in public (or to their peers) is tantamount to bleeding profusely in a tank of hungry sharks.

A sharp investor should be able to use that to their advantage.

How many times… - Posted by JT-IN

Posted by JT-IN on July 07, 2003 at 05:58:59:

Have you successfully done a short sale this way…?

Re: How many times… - Posted by Candice

Posted by Candice on July 07, 2003 at 10:20:14:

Yes matter of fact I closed on a deal about a month ago. It was my third. Requested 21 days and they didn’t have any problem whatsoever. It’s not that I doubt what you say but you spoke with such certainty as if your experience is a default in the business.

Just my two cents.