All Forum Posts by: David Martin

Congrats on taking action Mike.

Short sales can be a very tricky transaction if you are new.

It's hard to distill all of the nuances of a short sale transaction into a forum post, but it all boils down to the BPO (Broker Price Opinion). Basically, once you've submitted your offer to the lender, they are going to send out a real estate agent to do an independent appraisal of the property and come up with a figure for how much they will accept based on the value on the BPO. If that number is low enough to wholesale it or sell it to a retail buyer then you're golden.

You're going to need to put a COMPLETE short sale package together for the bank including a P&S agreement, Authorization to Release, Financial Statements and 2 years of the seller's tax returns along with a hardship letter explaining the reason for the default. The process can take 30 days up to a whole YEAR depending on who the lender is. I actually just closed on a SS with BoA that took 18 months! They are actually getting quicker at issuing approvals in my experience.

If you are attempting your first short sale, I suggest you find a SS negotiator who is familiar with the process rather than attempt to do it all yourself.

I don't like to do SS anymore these days because of the length of time involved, but that's just my preference. I outsource these types of deals to other SS investors in my area who want to work them in exchange for a percentage of the profits.

There are 3 "gurus" who specialize in this niche and if you do some research on google you should be able to locate their courses. Namely, Nathan Jurewicz, Cory Boatright and DC Fawcett.

Hope this puts you in the right direction.

Congratulations!

Keep it up :)

Here you go:

Real Estate Purchase Agreement
http://www.renegadewholesaler.com/bonuses/Purchase_and_Sale_buying.pdf

Agreement to Assign Contract for Sale and Purchase
http://www.renegadewholesaler.com/bonuses/Assignment_Agreement.pdf

I just want to echo the sentiment that you should check with your Real Estate Attorney to make sure these are legal in your area.

The silver package is what I use, personally. I've tested both Realeflow & Freedomsoft platforms and for wholesaling, I prefer FS. Realeflow does have it's strengths, however it is better suited for Short Sale investing and rehabbing. I am excited to see what they do with the next upgrade, as I'm a big fan of RF and the platform does include some great marketing material.

Two features of FS that are key for me: the Offerbot, which autofills out contracts for me (an unbelievable timesaver if you are submitting 50-100 offers a month, which you should be) and the well designed squeeze pages that are included with the subscription. It has dozens of other great features which I won't get into here, but you'll see what I mean if you decide to pull the trigger.

The main thing is to have a central database for all of your buyers/sellers/contractors/attorneys/realtors and so forth, so you can streamline your work flow.

For my main website, I use the Wordpress blog platform with Optimize Press. I won't get into that too much here, but suffice to say, lots of very successful marketers use this and its a great tool if you ever want to design your own custom squeeze page/sales letters.

Best,
David

Mike, I can't really respond to question 1 because my scenario is a little unusual. I've partnered with another wholesaler in my area who subscribes to RQ so essentially my cost is ZERO.

#4 I use Freedomsoft for all of my squeeze pages and CRM.

It’s pretty reasonable at $97/month and it feeds all of the buyers & sellers information into my database where they are tied to an email drip campaign that automatically follows up with them every couple of days.

I’m averaging 5 seller leads per week just from posting up one ad every Monday on Craigslist & Backpage that directs them to my squeeze page. My web address goes on all of my bandit signs, direct mail campaigns and classified ads.

There are other software solutions out there (realeflow) you can use or you can pay a web designer to program a custom one for you.

Btw, if you are the same Mike who emailed me, I tried to respond but my email got bounced back to me.

I don't see how CAR can dictate whether you choose to go FSBO or with your broker if you are licensed. If that's really the case, just work something out with your sponsoring broker.

In my experience, most brokers will give you a break on your personal property on the listing side commission. If you list it and a selling agent brings you a qualified buyer, why not pay the 2.5-3%? If you bought the property right in the first place, you should've built this expense into your deal.

Just to echo what others have said, my number #1 lead generation source is Direct Mail to Absentee owners. Personalize the addressee and property address for best results. I get my lists from RealQuest.com. Chris Chico has a great ugly yellow postcard piece that works well.

#2 is bandit signs, I like the 18 x 24 signs, blue on white text. I get mine from supercheapsigns.com. I'm partial to the FortuneBuilders designs on the "Partners" tab. But lots of folks love the classic black text on yellow. Skip the H-wire stakes and buy the 4ft Sign Stapler for utility poles. They'll stay up longer and you won't them pulled out of the ground by the sign police. Runs about $125 from signstapler.com

#3 is networking and passing out business cards, I use ugly yellow trifold business cards from vistaprint.com. On the back, my offer is $500 to bird dogs if they bring me a name & number and I close on the deal.

#4 Craigslist. I post a generic "We Buy Houses Cash. Any location, Any Condition" ad and send traffic to a squeeze page. I just put a 2 Flat Greystone under contract from this source. $12K and it's worth $135 fixed up.

Do you already have it under contract? Banks usually have their own addendums when it comes to REO property that supersede the purchase agreement. If not, ask the REO listing agent to send you the addendum so you can submit it with your offer. If there's no language in the addendum about resale then you're fine.

I hope you already have the buyer lined up, because banks don't typically grant closing extensions and will want to close quick.

BOA has a Short Sale addendum they will ask you to sign. Paragraph 9 states: Buyer agrees that property cannot be sold or otherwise transferred within 30 days of closing; Or 90 days if
transaction is approved under the Home Affordable Foreclosure Alternatives program (HAFA).

You will need a transactional funder that will allow at least a 30 day holding period between the A-B and B-C closings. Send me a message if you need a recommendation or want a copy of the BoA SS addendum.

Good luck.