Posted by tampasteph on August 15, 2007 at 10:49:14:
Dan,
The only thing this company does (from my understanding), is negotiate w the bank. You still have to get all of the paperwork from the seller, and then get the property sold when/if the notes are discounted.
I have never done a short sale, nor do I care to ever do one, so I am prob not the best person to be asking about this. I know that there is a lot more that goes into the process, though, than just negotiating w the bank.
I sometimes get leads that might be doable if bank with short, but chasing short sales seems like such a drag. Are you guys chasing these things or are some of you using a service of some sort? Paying an employee? Mine are currently just getting passed over. Love to maybe capitalize on a few of these a year. What are ya’ll doin?
Re: Short sales are a pain-You guys use a service? - Posted by tampasteph
Posted by tampasteph on August 15, 2007 at 06:15:58:
There is a company in Ohio called LMS that will do all of the loss mit work for you. They charge an upfront fee and a cut of the net profits when you sell. The guy who I refer my short sales to uses them and is glad to take the pay cut in exchange for not having to chase the banks around all day every day. He does quite a few deals, and I believe they gave him a discount on the fees because of the volume he does.
Any time you deal with a big organization, it takes work. Hiring someone to do it for you is probably going to make the deals negative since for real ability to negotiate and close deals, you would not be paying minimum wage.
Has anyone here had real success with LMS companies? I find that unless you have the time to establish a real, long relationship with the distressed home owner, it will be difficult to obtain money from these indicividuals (usually $800 per case) to go through the short sale process by LMS. In addition, the short sale process can take a long time. Unless they can ascertain that they have a “back channel” to someone at the debt negotiations department with the bank, it’s a difficult one. Just do your homework. Do your homework on the lender yourself. Make a few phone calls and you may find out that you get better feedback on the most effective way to approach it with them.
Re: Short sales are a pain-You guys use a service? - Posted by tampasteph
Posted by tampasteph on August 15, 2007 at 08:15:30:
Tim,
The guy I know who is using this company pays the fee himself (I think it’s 200 bucks or something). It is a cost of doing business and frees up a lot of time to be signing up more deals. He’s got 30 or so deals going at once, so outsourcing the loss mit work in exchange for spending hours and hours on the phone is a good trade for him.
I guess it just depends on how you want to run your business.
This sounds like a great idea. W/ my full time job i dont have time to go around chasing banks. I rather automate my biz as much as financially possible. I just purchased a SS course too, would you return the course (from another site, $700+, unopened) since this company will do the work or do you think thorough knowledge of SS’s still required - even using this a company?
I have 3 deals pending a SS, the 700 could pay for both!