Jack,
Calm down. Sean is ready and willing to help the sellers. But why should he be forced to leave money on the table and wholesale.
Please tell us ALL how to retail or otherwise make enough on the deal as many posters claim. Do you propose that Sean do this short sale for little or no profit. I think you missed the point, he is going to do the deal, but he is trying to figure out how all you “other” investors can make these hugh profits without retailing.
CRE Radio Show: “Short Sale Secrets” - Posted by J.P. Vaughan
Posted by J.P. Vaughan on September 10, 2003 at 16:44:21:
“Creative Real Estate Investing” Radio Show
Terry and I host the “Creative Real Estate Investing”
internet radio talk show every Thursday at 10:00am Pacific
(that’s 11:00am Mountain, 12:00pm Central, 1:00pm Eastern).
Our Featured Guest this week is Dwan Bent-Twyford, who
is a nationally-known expert on foreclosure short sales.
If 9 out of 10 of your leads are “no equity” deals, you
need to find out how to turn them from “no go” to BIG
profits by using the “short sale.”
Dwan will be telling us all about it!
Tune in this Thursday, September 11th at 10:00am Pacific
(11:00am Mountain, 12:00pm Central, 1:00pm Eastern) to
learn all the details.
Can you pin Dwan down on this issue below? This is a VERY IMPORTANT DETAIL in the short sale process. It is also one that the gurus seem to be dodging. PLEASE see if you can get an answer. I assure you it is the question that anyone doing a short sale needs answered the most!!
Heres the situation I am in…
I have negotiated a short sale with Countryide (1st lien holder) and HomEq (2nd lien holder) for a property in preforeclosure status. I have gotten Countrywide to discount to 83k and HomEq to discount to $2500 for a total of $85500.00. I have an end buyer lined up who is waiting to purchase the property for 115k with financing through Option One. Everyone is ready to close…but there is a problem. Option One, along with 99.9% of the other lenders in the country have seasoning issues and wont fund a deal that has not had the same owner on record for 12 months! So, with this in mind, how do I collect my 35k profit. I know there are a ton of people on this board who claim to have experience with closing short sales…so I really need to hear from you. All of the Gurus out there selling short sale courses neglect this issue, which is the #1 most important issue because unless there is a way to solve this problem, these short sales are next to useless for these type of quickturn transactions.
I am sure I will get a bunch of responses criticizing me for calling them useless and claiming that they can be done with ease…and these are the people who I want to engage in conversation with so I can be enlightened on how to close these. I will ANXIOUSLY await responses. Thank you in advance for taking the time to respond to my post.
Re: CRE Radio Show: “Short Sale Secrets” - Posted by bruceb
Posted by bruceb on September 11, 2003 at 05:51:32:
JP, Perhaps you could pin him down on our recent discussion below involving the sale of a property where you have already negotiated a short sale with a lender.
It seems then there are actually two problems:
A lender (sub-prime or A-paper) that will allow no title seasoning, and/or same day sale, a Flip
The lender being shorted, wanting to see a HUD-1 that they will sign off on, where there is significant profit to us, the investor.
I would like to know the mechanics to handles this, no fluff. I will try & tune in, but if you could ask him these questions it would be appreciated.
Thank you so much,
Bruce
Sean,
I closed on a short sale in January of 2003 with a retail buyer. I did a simult. close. The attorney said that it helped the whole deal because it was a short sale. It showed a paper work trail of why the house was sold at a discount and then sold for more. The couple owed 143k and I ended up negotiating a short sale buy price of 102k with Bank One. I then had a retail buyer that bought it from me via simult. close for 122k. Now another important thing to consider is the credit of your buyer. My understanding is that if they have A credit, then the seasoning issue is not so much of an issue. It is when you have the B,C,D etc. credit buyers that you run into the seasoning issue.
I also did a short sale this year where I assigned my contract to another investor/rehabber. I got an assignment fee from him and he gave the bank the money to pay off the loan. Now I had the deed to the property and all the bank wanted to see was the a copy of the warranty deed to trustee and the check and they released the lien. So yes it can be done in the real world. By the way these were both in a small town of about 3000 people but big banks
“Investors” who go and promise a person in foreclosure that they will “save them” and cannot follow through are the lowest form of idiot on the planet. Now the seller cannot be saved because you’ve wasted precious time they could have used to find a real investor that could have saved them.
If you don’t have the cash or resources to take these deals down STAY AWAY FROM THEM!
That is interesting. I need to find the lender who will do that type of deal. You mentioned it was in a small town but a big lender funded. Who was the big lender? That may be a good starting point for me.
As for the wholesale assignment, I am familiar with how that works. No problems there…maybe just a smaller profit. Let us know th elenders name if you dont mind. I suppose when all is said and done there is a couple lenders out there that will ignore seasoning of title, but they are far and few between. Thanks!!
I just sent JACK an email with my phone number to discuss his views and of course…it was returned to me and has permanent errors. If you are going to come in here piping hot with accusations, why not reveal your true identity? Obviously you are one of the morons using a different name to act as if youa re an expert in short sales…but can’t answer a simple question. Anyways, I am done being sucked into your childish game.
Listen Idiot…no one said they do not have the money or resources to fund a deal. That would fall under the category of EXIT STRATEGY!! If I cant get this deal to close retail with a lender, I have private money as a back up. That still does NOT solve this issue!! You are one of the pathetic idiots that sits behind the screen posting messages glorifying yourself when you really have not done a d#$mn thing!! Do not waste everyone elses time…you have been exposed for what you truly are!!
Sean is exactly right. Jack, who do you sell your short sales to, retail/end buyer or wholesale. You all claim that a deal is not worth doing for less than $xxxx, then you post things like well I wholesale my short sales. The profit margins I keep seeing you post indicate that you cannot do a short sale and make enough profit unless you sell it retail.
Sharon Restrepo are you veiwing this discussion?
Let’s see some real input and talking and name calling.
How do you know who’s right? I’ve been doing this many for years. You don’t even know what to ask.
YOU DON’T SCREW AROUND WITH PEOPLE IN FORECLOSURE UNLESS YOU KNOW WHAT YOU ARE DOING AND HAVE YOUR NETWORK SET UP BEFOREHAND! YOU DON’T GO IN TO A DEAL LIKE THIS NOT KNOWING YOUR SH*T BACKWARDS AND FOREWARDS!
It’s inexcusable treating people this way. Just absolutely, positively NO excuse.
Sean needs to FORGET about his greed glands NOW and find another investor that can take this deal down. ASAP!