So, what's the "short sale" fad anyway? - Posted by Ronald * Starr(in No CA)

the backward baseball cap still rules - Posted by Kristine-CA

Posted by Kristine-CA on July 13, 2003 at 22:46:34:

Ben: in my 13 yr-old’s opinion, the backward baseball cap is still happening. Recently were at an award ceremony at the Santa Barbara courthouse. A historic building, but very stiff and formal in that old world way. While we were waiting for the ceremony to start, I asked my daughter to take her cap off. She reluctantly agreed. Then the master of ceremony comes out and is wearing jeans and a backwards baseball cap. I give up.

Reality TV is here to stay for a little while, I’m afraid.

Sincerely, Kristine

Re: Bingo - Posted by Len

Posted by Len on July 14, 2003 at 15:04:32:

So does this mean that a short sale guru would be willing to take $50 (instead of $5,000) for a five-day short sale bootcamp since the bootcamp is pretty junky and really isn’t worth what they are asking? Do I need photos to justify my offer? Or a statement of hardship?

Sorry, it’s been a long day at the office and I’m getting a little cranky…:slight_smile:

Cheers,
Len

Why not? - Posted by Bryan-SactoCA

Posted by Bryan-SactoCA on July 15, 2003 at 18:29:21:

I’m just curious-why can’t sellers take less than the loan amount and make up the difference themselves if they’re really desperate to sell? I hear of this sort of thing in mobile homes all the time-seller owes $60k Conseco loan on a doublewide that’s now worth $15k, so seller sells it to Lonnie Dealer for $10k and assumes the responsibility of settling the outstanding loan. This sort of a thing will happen in conventional RE when all these fly by night mortgage companies who will loan to anybody with a pulse like Conseco did in MH’s go belly up from bad loans (like Conseco) and the retail value of the homes go down drastically.

More Short Sale Thoughts - Posted by Brian(MD)

Posted by Brian(MD) on July 14, 2003 at 08:11:26:

Ron,
When looking to figure the numbers on my first wholesale deal, I am highly concerned with two factors:
1:The purchasing criteria of my Rehab buyers
2:A deal that is as close to a sure thing to wholesale as possible.

In my area, hardmoney lenders are loaning 60-70% ARV on rehab projects. So that’s the number that I have to start working from.
If I can get a contracted price of 65%ARV - Costs of Repair - My Wholesale Profit, I can just about guarentee my ability to wholesale quickly. If I start with 70% ARV, I don’t know if it’s such a sure thing.
Being that I have VERY little cash, I can’t afford to have to buy and rehab the house myself in the event that I can’t wholesale it, otherwise I would start with the 70% price.
So, here is how I am seeing things.
Initial Contract Goal:
65%ARV - Repairs - My Profit.
In this situation, the only contingency I would need to include in the contract is the “upon successful negotiation to discount on mortgage with lender”, because it would be a no-brianer deal.
If ARV is 130k, Repairs are 35k, and my Profit 7,800 that works out to 41,700 max offer. Steve Cook advocates always trying to offer lower initialy so that there is room to negotiate up from there.
If they say that’s to much of a discount, then the offer that I can work with on the 70%ARV starting point would be $48,200. I would put an extra contingency of “upon procurement of financing” to guard my back.
What do you think? I’m just trying to structure this as close to “no lose” as I can. If I had 5k in the bank, I would worry less because I could afford to rehab it myself as a last resort. But I don’t.
Please, tell me what you think.

Interesting … - Posted by Redline

Posted by Redline on July 16, 2003 at 01:14:30:

When will it start and on what channel, do you know?

Thanks,
RL

Right over my head. - Posted by Stacy (AZ)

Posted by Stacy (AZ) on July 14, 2003 at 17:19:05:

Sorry, Len. Cranky or not, I have no idea what you meant.

Hope your day improves.

Re: More Short Sale Thoughts - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on July 14, 2003 at 09:32:35:

Brian------------------

Well, when they owe $61K, the chance of them selling for much less than $58K or so seems low to me. You have to do what you can do. As I said earlier, the numbers I suggest might work. The sellers get a little cash. You make a decent profit. Your buyer, if s/he will settle for a $20K to $25K profit is doing fine.

Good Investing*************Ron Starr***********