All Forum Posts by: Ayo F.

Which do you think is better, HAFA or Traditional Short sale?

Should I include something like this in my purchase contract....."Seller is aware that buyer intends on reselling the property for a HUGE PROFIT"....?
Would that suffice for full disclosure to the banks? If so, would the bank still be open to giving a steep discount?

Assuming the bank requires the property be listed by an agent, who do I list on the authorization to release information? Me or the Agent?

Thank you Maryann!
Ok, so I would like to negotiate my own deals. I do not want to leave that task to an agents. IMO, agents think 88% of BPO is a good deal. they can move the property and get their commission that way. For the most part, that leaves the investor with nothing and no cushion in case property values continue to slip further downwards. How then to I handle a case where an agent needs to list the property and also access quator BUT I want to do the negotiation and also be the one who meets the BPO agent at the property?

Which do you think is better, HAFA or Traditional Short sale?
So do I then include something like this in my purchase contract.....Seller is aware that buyer intends on reselling the property for a HUGE PROFIT....?

Also, isn't it against the law to give the seller money or portion of any existing equity ?

Hello BP Experts,

I am about to start a BofA short sale. The property is a 4/2/2 in a good neighborhood. The balance on the loan is $97,000 and the house is worth $100,000 after repair. It will need some updates. I have not gotten an estimate. Seller is 4 months behind and wants to do a short sale. It is a conventional loan.

Please, I need some guidance with the listing and drawing a purchase agreement.

It is my understanding that BofA requires offers be submitted via an agent through a system called Equator (whatever that is).

1) Do I get the house listed by an agent BEFORE i draw up any purchase agreement or should I get the purchase agreement signed first then get an agent to get it listed?

2) Who does the negotiation in this case? Me or the Agent? I prefer to do the negotiation but will the agent agree and will the bank agree?
3) Whose name should be on the authorization to release loan info? Agent or me?
4)Does it make sense if an agent says, the bank determines what the listing price would be on the MLS?
5) What is the general consensus as to... does the agent present a higher offer to the bank or withholds that offer? Is that hiding facts that can influence the bank's decision as to whether to accept or decline my existing offer? Will this be fraud?

Thank you.

Thank you Will..I will keep that in mind.

Thank you all. What strategies have worked for you in the past in keeping the contractors on schedule?

Thank you all for your advice.

Bill - When I started managing IT Projects, I was told that to be a good project manager, I had to learn how to do the job. Reason being that, when you know how to do it, then its easy to know what a realistic time frame is for each task, the precedence of tasks, and you are able to understand what challenges are being faced by your contractors. For example, It seems to me (from talking to a lot of investors and even reading the BP posts) that, it should be expected that contractors will finish jobs behind schedule, way over budget and at times, under the desired quality. Also, if we as investors want the job done right,, then we have to compromise on duration and/or cost. If I, as a project manager finished my projects behind schedule and above budget, then I would fired! If I finished behind schedule then my company starts to loose money and upper management sure hates that :wink:

So, How do I know what needs to be fixed? Do I get a GC to get me the break down and the precedence of tasks? I am also guessing that I can get a detailed inspection from an inspector and pull in my a sub crew, but then how would I know what needs to be done first (sequence of events)?

Simon - your idea of getting multiple bids on a job is a great one. I was thinking I would get 3 bids with a detailed work scope. I mean, I expect the contractors to tell me the precedence of tasks, how long each work package will take and cost. I am thinking of getting an average time and worst case scenario time and cost for each task.(I will go with the worst case scenario in building my budget).

I am thinking of imposing a penalty for everyday the job goes beyond our agreed date except for things that happens due to my fault. I expect that materials will be broken, their will be delay in ordering, one of his subs might have a sick child to attend to some days, but how does one realistically factor these into the project duration if you don't have any experience?

In general, Is this a reasonable approach from your experience?

Thank you

Thank you BP world for this amazing resource. I have been soaking in all the wealth of information available here on BP.

I am looking at some potential rehab deals but my fear is my lack of Construction experience. When I say lack of experience, I mean I don't have a clue of what a shingle is :D (although I think it's that thing nailed on the roof)

However, I have a project management experience from corporate America where I manage multi-million dollar IT Projects. I even have a certificate in Engineering Project Management.

So I feel on the long run and with some experience in rehabbing I could be a very successful rehabber but I just don't know how to start.

Should I sub my projects to a GC for a start and be the project manager for the projects?

Doing the work myself is out of it as I can't even put a curtain on a wall.
My fear with using a GC is that I won't know if I'm over paying for labor ( I can get material costs at the depot). Also, im of the opinion that I won't be able to control the project cost and timelines.

Please, does anyone have a suggestion on how to tie my project management skills with my lack of construction experience?

Thank you all!

I am planning to acquire properties in Houston, TX subject to the existing liens on the properties. I have spoken to 3 title companies about closing on my deals but all of them said they could not do a subject to deal. They would do an owner financing deal but not a "Subject To" or "Wrap around."

Please, does anyone know of any title company that does "Subject To" deals in Houston?

Thank you!

BPO came in at 90K. My agent suggested that a quick sale price for us will be about 90-95K. 

The house is 20 years old with a broken HVAC, outdated appliances....needs about another 5K worth of work.

So what then makes shorts so profitable or even better than REOs? How are some people capturing 30-35% in equity on shorts?

How can a short be predetermined if it's worth the effort or not.

Thank you