All Forum Posts by: Brian Wall

John,
it is certainly possibly to pick up properties at 60-65% of market value.

The problem is which ones. You have to know how to do your research.

I have a good friend who is currently working for a company that is buying at the auctions, but they just ran out of money. He is looking to partner with someone with cash. He would be willing to show you the ropes, work side by side, with him, and he can show you the websites they use to get info, etc. You could even go with him to the auction.

However, be prepared to do this full time, the auctions now are starting around 10am and finish around 4 or 5. You may end up waiting several hours for "your" property to come up.

Give me a call or email and I can put you in touch with him.

If you are interested in doing "part time", I would suggest looking into short sales. you can pick up properties for almost as cheap as at the auctions.

Would be happy to speak with you about short sales, as well.

Thanks for all the excellent input!

ok, I am trying to think outside the box, regarding short sales, and how to resell them to FHA end buyers. I am focusing on Southern California market.

I don't know FHA lending rules very well, except that you need to have 90 day title seasoning.

If I purchased a short sale, and then found a potential FHA buyer, could I rent the house to them for the 90 days, then submit the offer, and go through escrow, etc.

There are two issues I can see:
1) many agents won't want to hear they have to wait 90 days+ for their commission (no problem, I can get the buyers myself)
2) the appraisal that may come back 3 months later, could be different than it is today, that is okay, we can just adjust the purchase price. They either get it for the purchase price specified today, or the appraisal value, whichever is lower. I am only buying at 60-65% of market value anyway, so, I have some cushion.

I am not looking at this as the ideal, but more as a backup, if I go to flip a short sale and cannot find a buyer who's lender requires 90 day title seasoning.

Am I overthinking this? Do I even need to have a backup plan?

Any advice or opinion would be greatly appreciated.

i haven't used it before, but http://www.foreclosures.com has nod list for most of the country.

Only $50 a month is such a deal.

:oops:

Sorry Nick.

Now I know better.

I found a lot of good articles by Alan Cowgill

Please don't take this as me pushing his system. I am not.

All I am saying is that I have learned a great deal from his FREE articles.

The only piece I am missing is that SEC Guidelines piece, and I am searching for that right now.

Once I get a couple of deals under my belt, I will probably pay a few hundred bucks to an attorney to ensure I do not run afoul of SEC Guidelines when it comes to advertising.

Here is the basic transaction in a nutshell.

Seller puts their home in Land trust.
Once Approval letter comes in from bank, you locate an end buyer.
Once end buyer has completed due diligence and is ready to fund, the beneficial interest of the trust is transferred to the A-->B Buyer.
At that time, the A lender is paid off according to the terms in the approval letter.
Then the trust sells the property to the end buyer and all proceeds are given to the beneficiary (which is you, the A-->B Buyer).

That is basically it.

Just like any RE transaction the devil is in the details, as far as what will work and won't work.

I would also like to know the SEC requirements for my state.

I just want to be able to advertise to find potential investors, to lend me money (not HML), on real estate.

I don't necessarily want to broker loans.

Brian

I am a real estate investor/agent in Los Angeles, and a good friend of mine is starting to do some marketing for me, and he lives in miami, fl. Eventually, if his method of marketing works in Miami, we will continue to do it there, and implement in Los Angeles, CA.

Basically, he is targeting homeowners in foreclosure. The goal is to do a short sale flip.

I have everything in place, except a local agent.

I need someone that has an active license, and can list the property on the MLS. It could be an agent or broker.

Basically, my friend will get an interested homeowner, with some qualification, then pass on the lead to me. I will speak with them, over the phone to explain how I do short sales (using a land trust, and resell quickly for a profit, YES, I tell the homeowner I plan to resell quickly for a profit, I believe in full disclosure).

Once I get an qualified/motivated homeowner, I will need a local, licensed agent to come in and get a listing agreement, submit my offer, and get all documentation I need to negotiate the short sale. then have land trust documentation signed, notarized, and recorded. (I reimburse you for notary and recording fees).

You will earn 4% listing fee, based on sales price negotiated with the bank.

Then, once short sale has been negotiated, and BPO ordered by lender, I will supply you with the comps, and you meet with BPO agent, and give him the list of comps, asking him to use those. Most BPO agents will be happy that their research has been done for them.

Then, once approval letter is issued, you will relist the property at about 10% below market value, for a $1000 flat listing fee.

The buyers agent will be paid 2.5% of end buyers purchase price.

Well, there it is. Let me know if you are interested.

I am willing to train agents with an open mind, and willingness to learn, no knowledge of short sales, or land trusts is necessary, I will provide training, but if you do know short sales, and/or land trusts, that is even better.

Sorry, but if you know a "better way" to do short sale flips, I really don't have time to learn it. I am sticking with my method, I have it down, I understand it, and am not about to switch. I do realize that there are many ways to work short sale flips, I have found a way that works for me.

I have never worked a partnership like this, out of my area, so any suggestions/comments from those more experienced than I are welcome, and would be appreciated.

As far as how many I have done, I not done any in Florida, as I said, I am just getting into that market.

Thanks,
Brian

I would be very interested.

I can offer you 5% of the profits, once the deal has closed.

What is the source of these leads?