Is it worth it?

[Tayler LaChapelle]

I found a property today and it looked maybe like a nice fix and flip. I did some research to find the owner and even found the owner's phone number! Gave the owner a call and since it was my first call ever I am not sure if I asked the right questions but I did find out something. I found out that he has some liens on the property and owes the bank some money. He had an offer from someone for 100K and more for lower prices and the bank denied all of them. He said he probably needs at least 125K for the bank to accept. Now I haven't run any comps but on my county's website it has an estimated value for 137K. 

My question is does anyone have the knowledge to make this deal work maybe been here before? Or should I just let go of this lead?

[Carlos Aguilar]

Hi Tayler, 

I am surprised that no one yet has replied or answered this question. I have been a short sale expert for most of my years in real estate in Las Vegas. I can tell you short sales can be a gold mine. They just require tenacity and hard work. Which is why so many agents fail at Short sales. The key point to quarterbacking your deal is knowing who the bank or banks involved. All banks are different in how they operate. Some are easier than others. Some banks are more willing to work a short sale , while some won't. The challenge is knowing if the lien holding bank is set up to do so. Some banks are arrogant and completely fail to recognize the financial benefit a short sale brings to a bank's bottom line.  In a short sale, Banks can save in attorney fees, court filing fee and time. They get a huge tax write off as a loss as well. 

I learned long ago never take no for answer when you're dealing with bank a short sale. Provided that your deal is in full swing with the bank. You need to learn how to escalate and figure out who are the top brass of the bank and how to escalate your file to them if you get a no on the sale. 

In regards to the numbers of your deal currently , is anyone guess what the bank is or is not willing to do. The "Owner" you say , is the person your contact with? If that's the case , of course the Bank is going to tell him to go pound sand!  That is self if a big mistake. The banks only mission with dealing with the owner is they want their money. They will act like the mafia towards the homeowner, you want to short sale your home?  F***k you, pay me. That's what the banks frame of mind is.  They want their money. 

The owner needs a realtor that is an expert on short sales or some kind of representation.  An agent that basically follows what I outline here. They have to have a checklist to determine if there is a department at the banks that is setup to work on short sales.  The owner or realtor can ask the bank, do you process short sales? If they say no, be sure to escalate to speak to a manger. From experience some good agents will already know if this particular banks does or does not do short sales.  Once that is determined then you know if its a dead deal or if there is a chance to get a good deal on it.  Good Luck !