Experienced Investor new to site

[Chris B.]

Hi All,

I am experienced in short sales and I am willing to share some of my knowledge with those who are interested in this area.


Bye for now!

[Chris B.]

Hi Will,

There is many moving parts to short sales, as such, there is many "systems" we use. I will lay out our process and hope that answers your question.

Almost all of the deals we are doing are word of mouth referrals. I am actually putting together my marketing plan now that I am ready to take on a much larger volume.
At first I did EVERYTHING and worked myself to death. I am glad I did now because it made me better and I honed my skills, which makes my current structure, much less stressful.

Now, the agents we work with go out to meet the homeowners on many occasions, get my contracts signed, and gather the financial docs from the seller. They deliver the package to my office and my assistant checks everything in, and requests anything missing from the homeowner.

She then sends the package to my negotiators office. Tip: Try to find a great negotiator early on, it makes a huge difference and you can avoid the brain damage of working with the lender yourself, which also frees up more time for finding deals, playing golf, and having fun with your kids (if you have'm of course.)

My negotiator takes it from there. When the BPO is ordered, Either my agent, me, or my biz partner go out to meet the BPO agent.

Once we get a counter from the bank (happens almost everytime) we determine based on comps and the number they would like us to be closer to, what we do next.

If we think we can get a good number, we counter back and at this point list the property in the MLS to find our end buyer. If the number is too high, we evidence to the bank why we disagree, and push for another BPO.

If the price remains too high, we wait until we get a buyer that makes an offer around where the bank wants and we "substitute" their contract for ours to get the house closed and help the owner avoid foreclosure.

If the price is good and we know we will make a profit once we find our buyer, we crack a beer and celebrate.

I was a lender for years and the last piece of our business is making sure that our buyer's lender has no seasoning issues (if they are not paying cash of course) and will go all the way to just prior to loan docs for us to take title.

We then close on the property, our title company gets an updated title prelim the same day over to our buyers lender and usually in a day or two they sign to close and we get paid.

Let me know if you have a more specific question that I can answer.