All Forum Posts by: Chinmay J.

My end goal (or dream) is to do work in syndication deals because I want to help others by offering a way for them to invest in real estate instead of using excuses like they are too busy or too scared or too whatever to get started on their own.

As of today, however, I'm relatively new to the investing space.  I have purchased two out-of-state turnkey properties.  Currently, I am saving money to purchase a small multi-family to house-hack.  Then hope to purchase a few more multi-families to manage before moving up to larger/commercial multi-families.  And ultimately grow to a syndication deal with 50+ or 100+ or larger buildings.  This is something I hope to accomplish within the next 10 years.

Today, my full-time job is as an engineer but I wouldn't say I really enjoy what I do.  I am considering starting a part-time MBA program to help me side-step into the business field which I would like to think will help me with syndication.

My question is, knowing my plans/desire for down the road, what are the opinions out there on whether or not a MBA is necessary/advantageous on my path to getting there?

Does anyone have advice on other actions or steps I can take now to help me on my journey?

Does anyone have a syndication business they would like to tell me about or hire me on part-time for free to learn more about the business (knowing I'm a newbie)?

Thanks in advance for any & all help/feedback.

@Chinmay J.

Yep you are spot on. This is a solution for people who's only real issue is credit card debt. Which is a large portion of people. Many people pay their bills on time, they just went too far with the credit cards. Easy fix and can pay off big time like it's about to for me when I refinance a $400K loan at the best rate available.

Maybe this is a little different perspective, but I wanted to respond to your questions.

- The seller could be acting on their own, but you should be able to tell if that's the case. All communication we've gotten on the short sale we're involved in has come from the bank via our Realtor. There are preliminary forms and what-not they send you. Have you seen any correspondence or documents from the bank? Your Realtor should be able to confirm what's going on.

- Yes, I would be willing to wait a couple of months for a good deal. Someone recently said that getting into a short sale is like a real estate time machine. You can lock in a property at today's price and actually take possession of it at some point in the future. Sometimes that's a drag if it takes forever, but it also frees you up to work on something else while this plays out.

Hi @Chinmay J.

Wayne is spot on. Short sales often times are not accepted by the bank or the approval is changed months down the road. They have a bottom number where they are going to make money on it (Time owned, payments made, is there PMI/FHA/USDA/VA backing) and if things don't hit that number they say no. They are not the "Fire Sales" they use to be.

If the bank is going to lose money and the loan has backing insurance (FHA/PMI etc) they just say no, why lose one cent when they are insured against loss. Let it foreclose and make their claim against the govt (they get to tack on all their extra fees). it is usually good to research when they bought the house and how much is left to pay, may help you find the right number. The process is generally that the owner and you agree to something, then it is presented to the bank. An "Approved short sale" means that someone else made an offer and the bank said "Yeah that works for us" but the buyer already left and found something else by the time they agreed. Now they are trying to find someone who will match the price the bank already agreed to.

Your guess that the bank is most likely in the dark is usually pretty close until the first offer gets accepted.

@Chinmay J. A cash purchase doesn't speed up the process at all, the lender just verifies the buyer has cash/pre approval to begin the review process.  Offers don't get submitted to the lender, only fully executed contracts.  I didn't assume you were the listing agent, but you and the listing agent need to know about any junior liens that may need for the buyer to kick in some extra money to satisfy them, up front, in order to structure your offer properly.  Example: here, one of the biggest problems with a short sale can be back hoa dues, $10-20k.  The bank will typically only pay 1% of the loan, or a max one year of dues out of their pocket to settle this, say $3000.  The hoa demands $8000 to settle.  The seller has no money, so the buyer needs to kick in $5000 in addition the purchase price, so the buyer needs to lower their max offer by that amount.  Same thing with 2nd mtg.s, judgments, etc. You need to figure this out up front instead of 60-90 days later, when it's too late to lower your price.