All Forum Posts by: Dave Grosse

Sweet deal, did you do a lot of the work yourself?

good question caleb - I wonder about that though since they will be paying out commission once its REO anyway. do they just consider it a wash? I haven't had any transactions come up to prove it right or wrong - anyone else care to chime in on this? plus in this scenario, the property is already listed and the realtor of course will not drop their commission so you can make more money

Chris - just want to clarify. the realtor isn't getting 12%, only a TOTAL of 6% of the highest sale price(the b-c transaction). so again in the example the agent would receive a total of $9K, but the bank has already paid out $6K from the A-B, leaving you with $3K left to pay. And i think it was Ted, not me, that gave the idea of the addendum to give you the right to refuse all offers...

If the game is to sell the lender on why a short sale is better for them, how do I figure out an approximation of what the bank might get at auction if they take a property back?

you might also consider making the realtor work for you. give them your business plan, and explain how they could get more money by selling to you. you could allow them to get commission on A-b AND B-C, if you want to pay on the B-C of course. OR, and i really like this if you can sell the realtor on it, you could offer to pay them a total of 6% of the final (B-C) sale price.

Example:

A-B sale price = $100K
A-B commission 6% = $6K paid by bank

B-C sale = $150K
B-C commission 6% = $9k

You actually only pay $3K, and this way the agent makes more $. And you have a new player on your team. I think it was smitnlit who gave me this payout structure, just want to make sure she gets that recognition cause I never heard of it anywhere else!

Brian - how does a deal get stolen if there's an option recorded? I'm guessing that another investor might look for these records, then contact the homeowner and offer them cash or some other incentive to sell to them instead of me?

Scott - kind of the same question for you with the divorce scenario; would one of the owners look for another investor to offer them something - like cash - to go with them?

Also, if you have time, would you mind explaining why it does not pay to record a notice of option if the home has no equity?

And i"m going to throw another newbie question in here - currently we don't go after any short sales where the property is already listed. my mom is a real estate broker and has a non-related agent that works for her who does all our listings. She acts as buyer's agent and we have the homeowner sign a "list/show/sell agreement" which basically states that the seller is granting the agent the right to do those 3 things, but that the agent works on behalf of the buyer and not the seller.

My question is this - how can we make offers on property that is already listed with another agent? would it be best to try and get on the listing agreement with the seller? or is there some form we could sign with the other agent that would in effect allow them to split the A-B commission, but allow our agent the right to list it for the B-C? :idea: maybe the agents could just switch roles? so the other agent becomes buyer's (my) agent and my agent becomes seller's agent? i think that's it but please let me know if I'm missing something

Hi Sharon and welcome! What part of STL are you in? I'm in Belleville doing short sales over here, but will be looking to get some deals on your side of the river very soon. what areas are you looking to invest in?

your title co should be able to hook you up for free, or at least pretty cheap

Try this # for BOA - 866-880-1232. I don't have any problems getting through with this one.

Since you have an FHA loan you will be allowed to receive $1000 at closing. And since it is an FHA loan you can expect the bank to take NO LESS than 84% of whatever their appraised value comes in at.

As an investor, when I make an offer on a property, I also do the negotiating with the bank. You may want to ask the buyer of he knows what he is doing, or if this is the first time he has tried to purchase a short sale. If he has experience, then he should be able to handle the bank on his own, or with the help of a professional negotiator.

I agree 100% with everything Justin said - and want to repeat - Talk with an attorney about your deficiency judgment and potential tax liability. There's absolutely great people with very accurate and insightful advice here, but you must protect yourself by speaking with an attorney in your state.

Hope we are helping

Ted I haven't had them ask me to change names directly, just that they wouldn't pay any closing costs if the buyer was an LLC, only if it were an individual buying. I'm absolutely done with BOA.

who are they? Lemme guess BOA is one of them? you could try getting them on the phone together via 3-way call and let them work it out. why does the first really care what the 2nd has to say anyway? If the second wants more than what the 1st is willing to pay, then you may have to come up with that out of your spread.