When to begin marketing your SS?

Question

Hi, short sale experts. As I have been extensively studying short sales for about a month now there are a few questions that I have yet to find the answer for. When should I begin marketing my short sale property? Can I market it before the bank approves my offer? Can I put it on the MLS? Thanks!

James Ward · Answer

You should start marketing the property the day you put a contract on the property. Yes, you can market the property before you get an acceptance letter. Yes, if you have permission. All of this should be put into the addenda. -The ability to market and sale the property.

Susan Park · Answer

We have it marketed from day 1 for the A-B on the MLS. Depending on the bank, we'll normally cancel the A-B listing from the MLS and Relist the home on B-C through a different broker after the BPO has been done. Unlike what the "guru's" teach, we use different agents/brokers for every side of the transaction so there won't be any issues that arise about "fiduciary responsibility" in the future if the short selling sellers decide to get lawsuit happy in the future.

Nick J. · Answer

nope, the listing is between myself and an end buyer, nothing to do with the A-B. The B-C is contingent upon successful A-B anyways. I've had a few times where the BPO noticed it was listed for a higher price and turned that into the lender as their opinion, yes,that was lazy of them to do but whatever, you gotta roll with it sometimes. Don't worry about selling to conventional, there are too many cash buyers and qualified conventional buyers to get caught up in worrying about if you can sell it.

Nick J. · Answer

I usually get it marketed on the MLS as fast as my agent can post it up. The sooner I have an end buyer, the greater the feeling I know I'm going to make money on the deal.

Steve Norton · Answer

very true my man! It has been hard to have a split personality LOL.. Realtor/investor... :) Hey... should I create an LLC to submit my offer to the bank or just in my name. I am wondering as I have the listing as well, what is the best way to set up the whole thing and for the future. What do you suggest? oh.. and thanks for your time!

Edward Alvarez · Answer

We list with an agent and have them drop the price down 5% every week till we get offers coming in. Its also important for your to be the contact person when the BPO agent comes out to check out the place. Influence the BPO any way you can. Ex. Have an estimate of repairs from a licenesed contractor to give to the BPO agent, most the time these BPO agents just drive-by so try to give them the big picture. Also if the lender gives yo ua problem with BPO values, let them know that the price is retail price and not distress. Most all BPO agents are lazy and use CMA to come up with a value which doesn't really reflect your personal situation... I say list right away as soon as you have recorded and notice of Contract and Affadavit. Hope this helps

Nick J. · Answer

Steve, there are many ways to skin a cat, just because you 'heard' something, doesn't make it completely true or the only way it goes down. There have been times I've waited until the BPO is done before listing it and those were b/c those banks were known to be quick or at least quick on ordering the BPO. Other banks took/take forever and we could have already locked up a buyer, took it off the MLS and proceeded with the short sale without any hitch in the plan. I know you're new to the whole investor side of things so I wont' scold you too bad, just remember, if you're doing things as an investor, you MUST think differently than your realtor side of your brain is telling you too. Stick around, I'll learn ya a thing or two :mrgreen:

Nick J. · Answer

NEVER do any deals in your own name! For this one, it's tricky since you're the listing agent. You might want to have someone like myself come in as the buyer or give up your listing and have a agent/friend list it and you go in as the buyer.

Edward Alvarez · Answer

I've done deals under my name, other then having to pay taxes on gains, I haven't had an issue yet. Nevertheless, its great advice not to use your name but rahter use an entity (trust, llc, etc...) As far as having a listing and buying. The way you would want to do this is, the listing being of course under your personal name, and the buyer being your LLC. Always check with an attorney...

Nick J. · Answer

yeah, I guess I jump in here :) My contract with the seller or if it's a listed property and I'm working with the listing agent states that they give me permission to market the property for profit prior to COE. This give me permission to have it listed on the MLS where a majority of the buyers are even cash investors, canadian buyers(seems to be increasing as of late) and your normal retail buyer. Thats all there really is about it, it's much easier to have someone else sell it for you for top dollar then selling it yourself. James has a really cool system in place so he does things differently. Whether you place it on the MLS or not, getting it sold before you even buy it is a wonderful thing :)