All Forum Posts by: Adam Scheetz

@Caleb Heimsoth I’m glad you phrased that question the way you did. This is essentially where I’m wanting input from others. If the short sale offer is accepted and I’m not in a position to execute, what’s the harm. It took 6-7 months to hear back that they will accept it, oh dang I can’t do it, what are the negatives?

@Minna Reid when you say Proof of ability to pay are you referring to a cash only purchase or already having a loan secured? Also, if the homeowners owe an amount X, and the home is worth Y, and X is more than Y, the lender can agree to an amount less than what’s owed to avoid the foreclosure process. What am I missing here. The other guy says that the home value has nothing to do with the loan and I never said it did, only that the relation between the two is what makes is a short sale.

@Jason D. Thanks for the response!

if the property only has a single mortgage, they are underwater, and can't make payments, and owe more than what it's worth, how's that not below market. If the house was worth more than what they owed they'd sell? I'm not following how you say there's no link to the lack of value of the property to the fact they owe more than a market will allow it to be sold. That sound like the definition of under market.

Now that I got your attention, let's talk about Short Sales and whether/when they are a good fit.

First, some context:

A Short Sale is when the NET proceeds from a Real Estate SALE will fall not cover the DEBTS secured by the liens against the property. If ALL of lien holders agree to take a lesser amount than what is owed, the sale will proceed.

So... If the homeowner is too far behind in their payments to catch up AND the home is worth less than the mortgage because of the market value. 

The big thing is that a Short Sale is initiated by the homeowner/seller BUT has to get the lender to agree. A Foreclosure is the Lender/Bank has taken ownership of the property and now controls it, seeking to get back as close to the original loan amount as they deem appropriate. Now...

To my question/topic of discussion.

Since Short Sales take SO LONG to simply get an answer back to an offer, Is there a time when it's appropriate to pursue a Short Sale knowing and/or hoping another deal will pan out and provide the capital to close on a SS if the offer is accepted in the future, preferably when the market has risen a bit and I've hopefully locked in a past price? Like investing with a Time Machine.

Current Example: In approximately 6 months, I will have proceeds from a flip. If I come across a good deal that is a short sale, where the down payment on the offer I make will be covered by my current flip proceeds [assuming the bank and seller give the thumbs up], is their any harm in making the offer now?

As always I look forward to your thoughts!

@Jay Hinrichs What you said got me thinking. As I look around different markets and different areas within a market I'm paying particular attention to the rents and I'm noticing a correlation with the rents and overall neighborhoods. You can find a nice house at $750, but that's usually the nicest house in a iffy neighborhood.  I can't remember who said it first, but someone pointed out that higher rent is important for more than just cash flow. When something breaks in a C house and an A house they usually cost around the same. Difference is how much cash do you have to fix the problem with.

New Construction Build on the Eastern Jersey Shore!

Seeking two investors at $50k or one investor at $100,000 for new ground up construction on the water in Toms River, NJ. Willing to pay 15% for 6 month hold time.  Return on your investment IS NOT contingent on the sale of the property!!

The lot has already been acquired, remainder of financing secured, permits submitted and we are wanting to break ground in March. The time frame to complete the project is 5-6 months. 

 Acquisition of the lot, building of the house, fees, etc comes in at $660,000. The After Repair Value of the project is $840,000 as reflected in the appraisal documents that will be sent to anyone interested. Unfortunately, the individual that we had lined up just backed out because he didn't get funds from another project he was expecting and he feels he won't get them for another month now. So the opportunity to make $7,500 or $15,000 is now open to you!

We are wanting to get the building underway ASAP so that we can show a solid product by summer. We believe we will have a buyer before the project is completed based on previous experience. Everything is above board legally, contractual, and very professional. Priority #1 is ensuring financiers get there returns!!

If you are interested at all or wish to know more, I can provide a detailed appraisal report, tentative schedule, business licenses for contractor, sub-contractors list, architectural sketch, zoning requirements, and more.

If you have cash on hand, money sitting in a low interest bank account, or an IRA and you're tired of lousy returns, let your money work for you on a great hands off investment opportunity!! If you any questions whatsoever, please reach out.

-Thank You,

Adam Scheetz

[email protected]

@Alyssa Dyer it's definitely a love hate thing for me. I enjoy researching and learning about an area and what makes it tick. But I hate the time required to do it, especially from a distance. It's hard until you build a team of folks you can utilize in an area.

@Caleb Heimsoth well I was 15 and working at a Sonic Drive In. $5.15/hr didn't offer me much hope for buying real estate. Haha! 3% rule....ooooh that sounds like a unicorn. Hope it works well for you.

@Caleb Heimsoth You're Awesome! You beat me to it. I like your analysis on rent. Ironically, late last year I was looking in Cary, NC. I used to live in Raleigh in the early 2000's and remembered that Cary was expanding rapidly. What made you leave that market?

Thanks so much for your response!

@James Wachob thanks for the response. I'm loving this thread and the dialogue it's generated!