All Forum Posts by: James Ward

David,

When talking or interviewing a potential Realtor, make sure that the Realtor fully understand your process.

I have a few clients that have a checklist that they give each Realtor to sign. This gives written evidence that the Realtor was informed of the Investors process.

James

I saw one the other week that said:

My son was inmate of the month at Florida State Penitentiary.

1) I am a full time partner in my Real Estate Investment company.
2) I have been living in real estate all of my life. (Except for the time I was outdoors, due to the U.S. Military.) But I have been a Real Estate Investor for over 5 years.
3) I do not own any Real Estate. (Owning is not a part of our business plan.)
4) Books, news, and other investors are the most valuable to me.
5) WOW! I would approach Short Sales totally in a different manner than I did at first.

I had fun with this.
Thanks!

Oh, so you were just wanting to lead me into an ad for your company.

Okay, no big deal.

Micheal,

Chase- They are one of the easiest Lenders to negotiate a Short Sale with. Although they can be time consuming, they in the end will work out a great exit for the Property owner and a good price for the Investor.

Since this is your first deal, a little advice is in order:
1) Work with an Investor that has closed Short Sales. Getting a partner in the beginning will make things alot smoother.
2) Make sure anyone you work with, fully understands what you plan on accomplishing. Walk them thru your process line by line.
3) Make sure whom ever is negotiating the Short Sale knows how to negotiate a Short Sale for an INVESTOR. (There is a BIG difference between submitting a package and actually negotiating for the best exit and best price.)

I hope this has helped in your venture. Good luck and please keep us posted on your events. If you have questions, ask.

Hazel,

Commercial Short Sales do not work like Residential Short Sales.
Yes, the compensation is much greater, but so is the time and effort.
I will negotiate a Commercial Short Sale, but require several items. If you look at a post above you will see those items. Since 'most" investors do not want to put down a deposit, it weeds out most investors.

But, the profits can become very large if the deal is structured correctly!

Did I even come close to answering your questions?

Most of the clients that we work with have the following exits:

1) Buy and Sell to End Buyer ASAP
2) Move out of way and let End Buyer buy direct from Property Owner
3) Buy and hold until End Buyer is in place
4) Buy, rehab, and Sell
5) Buy, rent

Most of our clients do not want to do # 4 or 5, but both are an option.

You also must know several ways to find Buyers. And also be able to get into contract with the "right" type of Buyers.

It all depends on what is negotiated and agreed upon by the Lender and Property Seller. Any Short Sale Negotiator worth their wait in salt, will negotiate the "best" possible exit for the Property Seller.

Just giving out numbers will not get an answer. The only true way of finding out what will result is to talk and negotiate with all Lenders involved.

As for what makes a Short Sale a "better" resolution than a foreclosure, read thru this site. This topic has been addressed many many times. And you will see many different points of view.

Michael,

Before you go and do anything with this property or any other property, you must have several exit strategies. Being able to negotiate a Short Sale is only one(1) part of the transaction.

So, the real questions you need an answer:
What is my plan with this property if I can/ do purchase?
What other exits have I considered if my main objective is not realized?

Answer these questions before you do anything. The most sucessful Real Estate Investors have several exits to every project and are prepared to put into action any of them at anytime.

Hope this helps,
James

What a great reply Scott!

We all need to wait and look at this thread in 9 months. And see how the HAFA program did NOTHING but assist the Lenders.