Real Estate Consultant · Monrovia, CA · Member since 2009 · 73 posts · 20 votes
I have a pending deal set up and need info. I am knowledgeable in negotiating and closing short sales but in this case I am not sure about negotiating the deal as I am the buyer. The seller and I have already agreed to the price and the seller is willing to do whatever it takes to get out of the property quick. So far there is no agent involved. I have my license but the sale is in another state.
I already have the necessary disclosures to complete the deal, I'm just worried about legal issues if I negotiate to get the sale approved and being the buyer.
Also looking for short term financing at 5points and 13% interest w/ at least 3 months differed payments so I can offer seller financing on the resale.
Any help and/or suggestions will be appreciated!
-Marcus :lol:
Real Estate Investor · Ocala, FL · Member since 2008 · 742 posts · 463 votes
16y
As someone that owns a company that performs short sale negotiations both for ourselves and many other investors. Outsourcing is a great thing, but you REALLY need to fully understand the process for yourself.
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
16y
It doesn't matter what if the seller agrees to the price, the bank determines the price.
Negotiating your own short sale is over rated. Outsourcing while spending your time getting more deals in the pipeline is what you need to be focusing on.
why would you put yourself at risk by offering owner financing on it once you completed the A-B side? You should seriously consider flipping the short and lining up the B-C side before an approval, use transactional funding and cash out, move onto the next one.
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
16y
Originally posted by Marcus Mccray:
I have a pending deal set up and need info. I am knowledgeable in negotiating and closing short sales but in this case I am not sure about negotiating the deal as I am the buyer. The seller and I have already agreed to the price and the seller is willing to do whatever it takes to get out of the property quick. So far there is no agent involved. I have my license but the sale is in another state.
I already have the necessary disclosures to complete the deal, I'm just worried about legal issues if I negotiate to get the sale approved and being the buyer.
Also looking for short term financing at 5points and 13% interest w/ at least 3 months differed payments so I can offer seller financing on the resale.
Any help and/or suggestions will be appreciated!
-Marcus :lol:
I am no attorney, but as long as you disclosed that your a licensed real estate agent to the seller prior to signing the contract and because your a principal in the transaction, you should be fine.
As part of your signed disclosures, you should have the declaration your an agent.
I agree with Nick... Your better off handing off the negoatiations to someone else and focus on building your business. Also agree with flipping unless your a buy and hold investor like me :cool:
Real Estate Consultant · Monrovia, CA · Member since 2009 · 73 posts · 20 votes
16y
The seller and I agreeing on the price was just info for who ever responds as I am well aware that it will be the bank that determines price.
I intend to flip and I have the funding but only for a back to back closing. The short term loan is a back up plan in case I can't find a cash buyer or one with hard money funds. As you all know seasoning clauses can be a... you know and seller financed B to C deals are easier to move, more involved but easier cause then you can sell to a buyer with institutional financing.
I just like to have as many options covered as possible. Thanks for the tips guys! I really have to get moving on this as the seller called me a little while ago anxious to get things underway!
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
16y
Originally posted by Marcus Mccray:
Nick I sent you an email w/ my number too!
I got it, I'll call ya tomorrow
Originally posted by John Williams:
Nick- How about some more info on who you outsource your negotiations to, and what it costs.
Thanks!
John, you should expect to pay in the $2500 range give or take a buck or two. This isn't usually paid up front but rather out of your profits once you close and cash out.
Don't be offended though if you're new and a processor ask you to put some money up front. You've got to be able to prove your ability to close deals or else the processor is wasting their time. You have to remember, it's a business for them as well.
The biggest benefit by teaming up with me when you've got a deal and just don't know how to execute it is, I know how to execute it, I've got the proven team members in place and have the ability to walk the walk and I'm not skeered to do it :mrgreen:
The only 3 processors I would even consider handling my short sales are James Ward, Scott Hubbard and my star student who is know officially a Rockstar! Justin Schnettler. They are all here on BP and know their stuff.
Justin has a handful of my shorts, James just started to pick a few from me and I plan on including Scott to the mix very very soon as I ramp back up to my usual overloading with shorts as the last few months, I've been slightly lazy working other projects.
Inspector · Alsip, IL · Member since 2008 · 361 posts · 75 votes
16y
Nick, I've got a possible short sale in the works. I'm meeting with the lady tomorrow, getting all of her info for the short-sale package, and getting a contract signed. I was wondering if I could get some info on possibly working with you and your team about it. I've been educating myself about them for a couple of months now, but haven't had the opportunity to work on one yet. Would you recommend I try this one myself for the experience, or would I be wise to hand it over to the experts? Thanks man, you rock!
Vendor · Los Angeles, CA · Member since 2009 · 5 posts · 0 votes
16y
Originally posted by Joseph Ziolkowski:
Nick, I've got a possible short sale in the works. I'm meeting with the lady tomorrow, getting all of her info for the short-sale package, and getting a contract signed. I was wondering if I could get some info on possibly working with you and your team about it. I've been educating myself about them for a couple of months now, but haven't had the opportunity to work on one yet. Would you recommend I try this one myself for the experience, or would I be wise to hand it over to the experts? Thanks man, you rock!
Mr. Joseph,
I could not help but visit Nick's website and take a look at a breif video and there I saw your picture. Are you implying in the above response that you have never worked with Nick? How is it that your picture is in Nick's video, but you are inquiring about working with him.
I do not want to be the one to point the finger, so I wont. But I think you get the "Picture".(LITERALLY) :oops:
I only can hope that not everyone else posting on this thread already works with or for Mr. Nick.
Inspector · Alsip, IL · Member since 2008 · 361 posts · 75 votes
16y
Hi Lyonel,
To answer your question, I purchased Nick's ebook a few weeks back. He asked for pics and testimonials for it so that he could make a video to promote the ebook. Nick and I have not worked together on any deals, but he's been a big help to me in the forums.
I will say though, that I just spoke with him on the phone for the first time about a short sale deal that I'm about to lock up, and asked for his advice, since I've not worked a short sale yet. He was kind enough to help me out (hasn't asked me for any of my money or sent me a bill). He also agreed to help me through it, again, for no money out of pocket.
I see that you're new to the forum, and maybe to REI, and I know it's hard to know who you can trust. I felt the same way, and have been burned before. But just check Nick's stuff out in the threads, blogs, etc. He's a good guy, and very knowledgable. And except for a well-written ebook, he doesn't offer a course, or bootcamp, or anything like that.
Sorry that was kind of long-winded, but I hope it cleared things up for you.
Vendor · Los Angeles, CA · Member since 2009 · 5 posts · 0 votes
16y
This is fine, either way whether this is true or not does not concern me. I myself might be new on bigger pockets, but that is not an indicator of experience in this field.
I wish you luck in the processing of your short sales.
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
16y
Originally posted by Lyonel Katz:
I do not want to be the one to point the finger, so I wont. But I think you get the "Picture".(LITERALLY) :oops:
yes, you do mean to point the finger or you wouldn't have added the additional statement of the picture and included the parenthesis which is done by those that feel their point isn't strong enough so they add the parenthesis to help prove their point.
The problem is when someone does that is they, themselves don't believe the statement they are making so it's done to solidify their own belief which they also know isn't true.
If this come as a surprise to you then maybe you should read up on human behavior and deception techniques taught by David Lieberman Ph.D. This way, when you make those statements and expect no one to call you out, you'll think twice about who you're going to attack publicly.
Inspector · Alsip, IL · Member since 2008 · 361 posts · 75 votes
16y
I have to think that if it didn't concern you Lyonel, that you wouldn't have made such a point of it. It just blows my mind, coming from where I'm at in my career (pretty close to the beginning) that anyone would think that I'm trying to pull the wool over their eyes about some kind of "guru" situation.
P.S. Nick, I guess you're a guru all of a sudden. Congratulations! :)
Real Estate Investor · West Palm Beach, FL · Member since 2009 · 33 posts · 2 votes
16y
I am in florida, the company that I use for my short sales doesn't charge anything they also own a title company so the requirement is that I use them for title. But I think its a good deal.
Real Estate Investor · TX · Member since 2009 · 47 posts · 9 votes
16y
Hi Marcus!
I am new to bigger pockets but not real estate or short sales!
First, there is no legal problem with you being the buyer and negotiating the short sale...typically however its best to use your LLC or company DBA for the purchase contract and your personal name for negotiating on the phone and through faxed communications.
Just disclose you are a realtor to the homeowner, and you already said you had disclosures done :-)
You shouldn't be paying that much for transactional funding---and I wouldn't seller-finance. I would do a double closing and flip it to an investor and collect a check the same day you close.
I would check out Cory Boatright's one-day funding, I think its much cheaper:
[AD LINK REMOVED]
Also, check out Charrissa Cawley...I've heard she has one-day funding also...you can compare pricing.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
16y
Your attempt to identify a potential BS artist is commendable and you should fit in here at BP Nation just fine as we all try to make sure we keep out the BS. However, in this case, you have stummbled across a "real player" in Nick. He is not a BS artist and his post count, influnece levels and participation in this forum would tell you that upon some additional reading on your part.
I have in fact worked and am working with Nick on several aspects, including the fact that he is negotiating one of my short sales.
To answer the original question, there is no issue with negotiating your own short as the buyer if you are an agent. Just disclose to all parties.
Blake, there are many transactional funders, including myself, but most do not provide many options, including anything out of the ordinary such as over 24 hours, with different title companies, etc. Of course price is important, but qulaity of service, ability to always perform, and options in services would be a key factor in my book.
Inspector · Alsip, IL · Member since 2008 · 361 posts · 75 votes
16y
I feel like the companies doing it for free would want to buy the house. That's the only reason I'd do it for free. Unless it was my mom or something. Anyway, if you're the investor, that wouldn't work, right?
Real Estate Investor · West Palm Beach, FL · Member since 2009 · 33 posts · 2 votes
16y
THE company i use owns a title company as well. so they do the short sales for free as long as their title company gets to do the closing. I have given them about 25 deals recently and its gone well.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
16y
Nick,
He'd have closing costs one way or the other. So it's really only a catch if they are gouging him on the closing costs. Sounds like that's not really the case here ...
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
16y
Brad (& others),
It has been my experience that nothing in life is free and as such, you are paying for it one way or the other. I also am of the belief that you get what you pay for in many cases.
That being said, the title company must have to charge higher fees to compensate for the negotiating time. Additionally, I find it hard to believe that they could be as efficient and effective as a professional negotiator, or an experienced investor doing the negotiations themselves.
Just my opinion and insight.
Real Estate Investor · West Palm Beach, FL · Member since 2009 · 33 posts · 2 votes
16y
Of course they are making their money on the closing costs. But most short sale companies charge a upfront fee and a fee to the lender. Especially attorneys. This company makes their money on the closing costs but the bank/seller pays the closing costs so doesnt hurt anyone on my end of the deal.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
16y
Not sure who you have spoke with but I would disagree. All the negotiators I know only charge after the deal has gone through, not upfront! On top of that, if they can sneak in additional fees on the HUD, more power to them!
Just one of many reasons why you can and should (if capable) negotiate on your own. Then you get the cost savings, plus extra profit on all the fees that pass on the HUD