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realestateremedies

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  1. before the change in the market about 30 every three days plus ads on different websites and Bandit signs Appreciate the input ..... and how about in todays market? In your area?
  2. For those of you that specifically focus on LO's wether it be SLO's or CA's, and for those that do it full time .... how many phone calls a day are you guys generally making? How many emails a day if you prefer to go that route instead?? Im sure it will vary depending on geographic location but Im just curious as to how many each of you actually make, vs how many deals per month you receive from them, vs how many deals you actually get filled and finalized ... Gracias ... appreciate any input in this area guys
  3. Ild like to hear more from other experienced members about this ... lets keep this topic going! Ive worked on short sales exclusively for quite awhile and am going to start hitting up LO's very soon. From the VERY little effort I have put into the LO arena I did notice it seemed that I got a much better response from the FRBO's rather than the FSBO's ... but I literally only spent an afternoon calling each ... so we are talking VERY limited and probably not even enough to make that kind of a statement. Definately got more of the FRBO's ears perked than I did FSBO's ... however, in that short amount of time. Could have been the weather, could have been the time of year, could have been nothing ... I dont know because I never kept at it and got sidetracked, went back to short sales ... therefore I have nothing to compare that afternoon against. Although I will shortly. As mentioned Ild like to hear more about approaches on both sides of the fence to tell you the truth. I have searched the forum quite a bit but this seems to have the makings of what could be a very informative thread for newbies
  4. Well, first of all I forgot the most important sheet of the entire shortsale package in my list above! LOL .. the hud-1 - I have edited my above post to include that and I have sent the required forms to your email addy John. As for the returning of your phone calls ... thats just the way it goes sometimes, but it all starts with prepping the homeowner when they initially call. I usually ask what I can do for them and they will respond that they called off of one of my flyers or letters, At that point I tell them that as the flyer/letter states I can buy their house directly from them, stop their foreclosure, and then negotiate with the bank to get their lender to call their loan paid in full. Then I move right into getting some info from them. I initially verify that they are indeed behind at least ONE payment. If so or if they are already in foreclosure I tell them there are some things they need to know. Firstly that IF the bank does foreclose on their property not only will their credit be hurt but there is a possibility that the bank will hold them liable for the deficiency if the house is taken to the auction and sold. Lets say they owe 176K on the property and it has an appraisal at 185. Well if the property goes to auction after foreclosure and gets sold for say 130 or so.... THEY can be held liable for the deficiency. Its at that time I try to build a relationship as a good guy and I say something like "I personally think its ridiculous, the bank takes your property and then tries to slap you with a $30K bill or more. Not that they will get it from you .. but it still attaches to your person and can cause problems. They can even garnish wages if they like down the road if your not paying. When I go in and purchase the property from you I write in all my contracts that the seller will NOT be held liable for the deficiency. I make sure that you will not be liable for that and you are out free and clear with no judgement. So whether you work with me or another investor, just make sure that they are aware of this pitfall, as well as several others that pop up." I also inform them that even if a deficiency gets waived, the lending institution will send out a 1099 and report that as income to them and they will be liable for taxes on that $$ amount. I then mention that they can contact an accountant and file IRS form 982 and claim that they are insolvent. By successfully doing this they will not be held liable for the debt forgiveness. I quickly mention that Im not an accountant however so you would need to contact one to see if this is possible in your situation. But regardless the same thing can happen if the bank takes the property through the foreclosure process. This way, I am buying the property, they have no foreclosure on record, are protected from the deficiency judgement, have help with relocation, and I can direct them to the appropriate tax proffesionals to help them iron out the 1099 issues. Worst case scenario 4 out of 5 isnt bad I always mention that since I am a licensed agent I can help in relocating them as well. I mention that my associates and I have rentals and houses we can sell on rent to own agreements if they are interested. Most of the time I end up helping them get into a rental but I do go above and beyond what most people do and help them locate and secure a place to live. If they have ZERO money, I will pay first months rent and security deposit for them to help .... assuming of course they have a job and can afford to pay the rent. At this point they see that you know what your talking about and have a little more trust in you. Now that Ive shown that I know what Im doing, and shown them the value in what I can do for them ...above and beyond just stopping their foreclosure, I assumptively ask for the address, their name, and other information .... then I ask them when they would like me to come over and take a look at the house. I dont ask IF they want me to come, just when. I do my research, check the assessors website, run my comps and see what I could genuinely sell the property within a week or two for. Then I take ALL the required forms with me, but dont always expect them to have all the info on hand. At the appointment my main goal is to get the contract for sale signed, the authorization, and a memo of agreement which I file at the courthouse for my protection. If they have the other stuff great, if not I tell them that I have to get the payoff from the bank and will contact them after I do so. In the meantime I have them gather all the financial info and anything else necessary. Thats a little bit on how I do things ... hope it helps ....
  5. Hi Craig, Im about 5 hours from there. Im in Omaha, Chadron is on the opposite North end of the state. I think I might have actually contacted you about that property 4 or 5 months ago. At this time it doesnt look like anything I want to jump on but it did perk my interest. I believe you sent me all the income information and so on??
  6. dt, shoot a line over to fellow board member Ji Woslager. He is in Nebraska and, like you, is also a Realtor in addition to being an investor. He's into short sales and can probably offer some advice. DT - as far as the ghost offer is concerned, I am familiar with them although have never used them. They have recently been brought to my attention from one of my partners and sounds like a feasible idea. However, they arent necessary and I believe your getting ahead of yourself. A ghost offer is not a necessary part of a short sale, just a tactic to get the bank to take more of a discount or accept your offer with less resistance then they might otherwise. As far as violation of any ethics codes ... I cant tell you. I know it is definately a grey area approach that Im not comfortable with at this point in time ... I need to do some more research before I would risk my butt by trying something like this, since I am licensed as you are. Whats wrong with just doing a bread and butter short sale .... and being done with it? K.I.S.S. here .. no reason to get fancy if you dont need to; dont fix it if it isnt broken. A properly presented and submitted short sale will work just fine without all the risky antics. You will need the following: - Contract for sale between yourself and the homeowner - authorization of release - opening letter from you to the lending institution explaining the homeowners situation, market conditions, property specifics ... anything that helps you justify your position. - hardship letter - mortgagor survey - income/expense/asset/liability sheet - financial statement sheet - HUD-1 - a monthly statment from the homeowners lending institution - the last two paycheck stubbs, last three months of bank statements on all accounts, and the last two years tax returns - a repair list with pics (not only general pics, pics of items needing repair/damaged structures, ect, ect - anything that will help 'prove' to the lending institution your offer is an acceptable one) when all of this is collected and properly compiled the shortsale package that I fax off to the bank is USUALLY in the 40 - 55 page range. I dont know why but it seems like every lending institution needs everything faxed TWICE before they receive it. Start by getting the lenders customer service number off the homeowners monthly billing statement. Call the number and ask for the direct phone number for loss mitigation. Its not always called loss mit, sometimes its the loan resolution department (ocwen), loss mitigation, non-performing assets dept., ect, ect. Just tell the rep you have a authorization of release along with a shortsale package for the property. They will ask you for the loan number and the homeonwers social security numbers (last four digits). Once you get the direct number to the appropriate department call that number and sit on hold again =) when you get ahold of someone simply state that you have a shortsale package with authorization and you would like to know the direct fax number that they want you to send it to. Fax off the offer, check back in 3 - 5 days to see if they received it and have entered your name into the system and granted you authorization on the account. Like I said, be prepared to have them say they didnt receive it and go and re-fax the entire 50 page short sale package again (I dont know why but it seems like EVERY time this happens). Wait another 3 days or so and call back and they should have you entered in the system. At that point they should send out an agent or appraiser to do a market anaylisis on the property. You are the contact person so you need to meet them there. The bank will have them contact you to make arrangements. Have the homeowners NOT be around if possible. Dont be pushy with the person doing the BPO. Many times they will ask you what you are trying to do. Be honest and tell them a short sale and tell them what your offer is. They will tell you at that time if they think they can do it or not ... many times anyway. Its curious to me because they are actually working for the bank and not you but many seem to try to help you. If they say your to low just casually mention any justification you might have. "I might be a little low but the market is really soft right now and with the repair list, and after I pay closing costs both when I buy it and then when I sell it, factor in potential holding costs, and in looking at these comps that I drew up (get the lowest possible) ... this is just really where I have to be so I dont get burnt" Something like that ... dont be obvious and try to influence the agent/apraiser .. but if they ask .. tell them. Once the bank gets the appraisal bank by that time the file is usually assigned to a negotiator and you can get a direct phone number to that person. Then things move along rather quickly. Negotiate and see what you can get it bought for! If you need the forms I have copies I can send ... just shoot me an email at realestateremedies@cox.net
  7. Hi MC Well Rev, Im afraid I really cant give to much advice that you havent already received. I ALWAYS use a title company (title companies are the norm around here), and as MC said it is cheap insurance. Having clean title to a property and having that title be insured is invaluable imo. Above and beyond that though, when you go to sell the property down the road, and if the buyer needs a mortgage, it might streamline the process and avoid any hiccups by having title insurance now - even though that buyer will more than likely need to purchase a seperate policy. Sorry I couldnt be of more help
  8. Yup, check in with him in another month ... then you wil have a new obsticle to overcome, competition. Once that NOD hits the public records he will be getting HOUNDED by other investors. At least around here. However, you are in a position to establish a good relationship with him so try to do so. Give him a call back and see if he's ready to work with you. If not ... move on
  9. That makes more sense In that case ya your only option is going through the broker. So now your obsticle becomes not only convincing the homeowner to let you purchase the house and short sale the lender, but getting the broker to agree to do it as well. Gaining experience is a good thing, but if this one doesnt pan out for you dont get discouraged .. as I mentioned getting the broker to cooperate might not be easy. You said yourself in only a week you've set 4 appointments .. just keep marketing and find a homeowner that isnt listed with a broker ...
  10. Ummm thats got to be a typo right ... lol!?? The comps come in at a million and he owes 7K?? You mean 700K right?? Why dont you just make an offer through the listing agent at say 750K, flip it for 950K and be happy?? LOL ... Im sure theres something Im missing here, like I said Im sicker than a dog so my head isnt exactly clear. Once again though, and I have to repeat myself..... he is under contract, and your are licensed .. you can get in trouble for soliciting him. Although if you end up making an offer through the agent Im sure you wont get any resistance Have you asked the owner "what is the least amount you would accept"??
  11. By the way, the reason your going to have to work through the listing agent is because your licensed. Some listing agents will allow the homeowners to sell the property themselves, and if they find the buyer the agent will release the contract. However .... your licensed, I would seriously reconsider your meeting on friday. All this is assuming that you live in CA, and found this deal in CA, and are licensed in CA. Being licensed has its advantages and I love it, however, this is a situation where it has its downfalls. If you werent licensed there would be no issues with meeting with the homeowner. At least in my state, and I would strongly believe its the same in CA, its against the real estate commisions rules and regulations to solicit a homeowner under contract with another agent/broker. You can get in big trouble by doing so. Your state may be different ......... Hi Ben ... I noticed your post on several other investment boards. Honestly, in this situation I would pass on the deal completely and just keep checking in with the seller on a periodic basis until he is no longer under contract. Why? Several reasons, yes there are ways to do the deal but it just gets really complicated with an agent/broker involved. 1) First of all, if you do in fact need to short sale this property (which I cant tell from your post, not enough info) then its going to be a little complicated with the listing agents involvement. Most dont have any clue as to what a short sale even is, and good luck getting them to cooperate. Now, if the seller has enough equity in the property to where you can payoff the loan amount or pay a little above the loan amount and still have room to profit .... then just make an offer through the listing agent. How much does the seller owe on the property? If its well below market value then just buy the property through the listing agent so he can recieve his commision and be done with it. If the seller owes right at or more than what the property is worth you will need to do a short sale. Its hit or miss but at that point you are STILL going to have to work through the listing agent. You will have to explain to the agent what it is you want to do, as well as the homeowner ... its doubtful your going to get him to agree just because most listing agents arent used to, and dont like ..... anything out of the ordinary. You never know though .... 2) Since you are licensed as well ... it is unethical for you to even be speaking with the homeowner when he is under contract with another agent/broker! You didnt mention if you are licensed in the same state as where this is taking place but if you are .... STEER CLEAR! Now, if its in another state OTHER than the one you are licensed in ... there might be a way to get around it but personally, I wouldnt push it. Ild give him your number since you already are in contact with him, and ask him to get ahold of you once his contract comes up IF the property doesnt sell. By then he will be more motivated, and you dont have to worry about violating any regulations set by your local real estate commision. I have a really bad cold right now and am having a hard time thinking straight so take it for what its worth ... I could be wrong on a few things but from the info you provided ... and what Im seeing .... in your shoes .. I would pass and look for another deal .... theres plenty out there.
  12. Hi Ben ... I noticed your post on several other investment boards. Honestly, in this situation I would pass on the deal completely and just keep checking in with the seller on a periodic basis until he is no longer under contract. Why? Several reasons, yes there are ways to do the deal but it just gets really complicated with an agent/broker involved. 1) First of all, if you do in fact need to short sale this property (which I cant tell from your post, not enough info) then its going to be a little complicated with the listing agents involvement. Most dont have any clue as to what a short sale even is, and good luck getting them to cooperate. Now, if the seller has enough equity in the property to where you can payoff the loan amount or pay a little above the loan amount and still have room to profit .... then just make an offer through the listing agent. How much does the seller owe on the property? If its well below market value then just buy the property through the listing agent so he can recieve his commision and be done with it. If the seller owes right at or more than what the property is worth you will need to do a short sale. Its hit or miss but at that point you are STILL going to have to work through the listing agent. You will have to explain to the agent what it is you want to do, as well as the homeowner ... its doubtful your going to get him to agree just because most listing agents arent used to, and dont like ..... anything out of the ordinary. You never know though .... 2) Since you are licensed as well ... it is unethical for you to even be speaking with the homeowner when he is under contract with another agent/broker! You didnt mention if you are licensed in the same state as where this is taking place but if you are .... STEER CLEAR! Now, if its in another state OTHER than the one you are licensed in ... there might be a way to get around it but personally, I wouldnt push it. Ild give him your number since you already are in contact with him, and ask him to get ahold of you once his contract comes up IF the property doesnt sell. By then he will be more motivated, and you dont have to worry about violating any regulations set by your local real estate commision. I have a really bad cold right now and am having a hard time thinking straight so take it for what its worth ... I could be wrong on a few things but from the info you provided ... and what Im seeing .... in your shoes .. I would pass and look for another deal .... theres plenty out there.
  13. If a homeowner is losing his house to foreclosure and I come in and short sale the property, I realize that the difference between the purchase price of the property and the loan amount is considered income and the homeowner is issued a 1099 for that amount. However, are they able to offset that by claiming depreciation on the property itself since they took such a big hit on value?? I realize on investment properties depreciation can be accounted for, but what about on owner occupants?? Thanks!
  14. Recently Ive been brainstorming to try to figure out a way that I can make a profit by finding properties that are eligible for a short sale, negotiating with the bank and selling them to someone else to make a profit. The thing is I DO NOT WANT TO TAKE TITLE. The problem is, as most of you know, the bank will NOT approve the short sale if there is anyone elses name on the final settlement statement which makes assignment of contract impossible. What Im wanting to do is this. I want to submit the shortsale package in my buyers name and negotiate on their behalf. When I meet with the homeowners I will have them sign a contract between themselves as sellers and my end buyer. Then I will have them sign a memo of agreement with me. I will record the memo which effectively clouds the title. Then I will release the cloud for my fee (10K). I see several issues and am not sure 100% how to get around them. I know banks are fine with me negotiating the short sale for another end buyer because Ive already done it and it wasnt a big deal. However, the fact that I am negotiating the short sale AND there is a cloud on title in MY NAME might raise a few eyebrows and Im not sure if they will go for it. Ive come up with several ideas to get around this. First, Im thinking that by placing the cloud on the title in my business name, instead of my personal name ... it might go smoother because the cloud is not in the name of the person that is directly negotiating with the bank. Secondly, I really need to figure out how I can record the memo with an exact dollar amount (10K) instead of just clouding the title. If I simply cloud the title, the title company has to call me to find out what it will take to release the lien. In theory this is when I would just let them know it would cost 10K to release it. I personally think it would go much smoother with the bank, since they will do a title search of their own, if I simply have a lien in the amount of 10K recorded in my business name ... against the property. I believe this might not cause as much concern as a cloud recorded in the negotiators name that has no exact dollar amount attached to it and needs further investigation to find out how to clear it. So two questions: #1 - how can I record a lien against the property with an exact dollar amount attached so that it will show up when the title search is done?? #2 - What do you think of this idea overall? Basically I would just be wholesaling the property but I would have to take title and my end buyer would have the equity in the property, I would make a profit, the homeowners would avoid foreclosure and the bank would get a default off their records. .... ???????????????????? Any input would be GREATLY appreciated!
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