All Forum Posts by: Kristian Peter

The service is there to get an approved short sale, assuming that the purchase price is within the BPO variance for the lender. So, they do not negotiate the lowest possible price, but they do get approvals based on FMV. They take the problems out of the equation and provide the seller with legal representation to avoid problems in the future. The service is perfect for real estate brokers / agents, or sellers. If you are trying to negotiate the lowest possible price on a short sale, and then flip it, then this is not the service for you. If you want streamlined, short sales, we've had 3 approved in under 21 days, at no cost - keep your 6% commission, and no legal ramifications in the future, as the seller gets legal advice, then this is a great service!

Email them for more details: [email protected]

Freddie Mac lists all of their properties with real estate brokers, and requires the properties to be on the market for at least 72 hours prior to any offers being presented. FM is about to roll out an initiative similar to Fannie Mae, where all properties need to be listed for at least 15 days before any investor offers can be presented, in an attempt to get more owner occupants into homes.

You must have a real estate agent represent you on the purchase, even if it is the Listing Agent, and Freddie Mac does allow the Listing Agent to represent the buyer (dual-agency). If the Listing Agent is working with Freddie Mac, then they will be a great source of additional REO listings, because Freddie and Fannie are basically the only entities releasing any volume of REO inventory at the moment (although that may change soon), and there may be additional opportunities to purchase properties from the same Listing Agent in the future.

@SteveL, we have listings from $70k to about $550k, with the average price point of about $270k (very affordable for San Diego, especially at these interest rates). The issue right now, is that there is nobody buying. Thus the supply is increasing daily, even though the banks are not releasing very many REOs. Price reductions are starting to come quickly, and most banks are turning to auctions, to get rid of their aged inventory. I guess that this is good news for the REDC and Hudson and Marshall...

@SteveB - we have just started the buy and hold strategy in certain markets, where we can get at least 2% rent vs. the purchase price of the property. Example: Las Vegas condo for $16k, renting for $600 per month (3% rents / price). What markets are you seeing buy/hold opportunities?

Over the last 3 months, the volume of offers has been extraordinarily low, here in Southern California (like 4 offers this week on 51 active properties in the MLS, and all properties are REOs that are priced to sell in the first 30 days). Everyone has been clamoring that "it's the expiration of the tax credit", and there are no other buyer incentives. Well, that may be the case, but now the summer (buying season) is officially coming to an end, and available properties on the market are increasing steadily...

Are you ready for the next Dip, which is going to be BIG... What are your thoughts on how much value will be lost in your area during the next 12 months?

The best way to make sure that you are not circumvented is to work with a company that you trust. You meet the criteria for buying, you get paid your fee through escrow. If you have a property that makes sense, send me an email, without any of the property specifics, just the price being paid, the amount of repairs, and the resale value, along with the fee that you would like to make. Assuming that everything makes sense, we work with an investment group that will buy anywhere in the country and close in 5 days.

Being a real estate broker, I always recommend hiring a real estate agent to assist in the transaction, and paying a commission that is appropriate for the amount of time and effort and money that is reciprocated by the agent. Some agents spend thousands of dollars and months of time making sure that every available buyer that is looking for a home in your area has the ability to see your home online, or via open houses and print advertising. That is basically what every seller wants, the best ability to have a buyer see their home and make an offer...

The next part of the equation is the ability to Close the transaction, and this is the part of the sale that sellers never seem to understand or appreciate. Every real estate transaction is different, and the myriad of issues that arise during the transaction, from inspections, repairs, appraisals, lending/underwriting problems, escrow, and legalities - this is where the real estate professional earns their commission. From the day that a contract is executed, until the day that is closes, there are no easy escrows, with the lone exception being an undervalued property being sold to a cash buyer...

The way that a real estate professional earns their commission, is that they sell your property for the highest possible price, and get the property to close escrow. If you don't believe that your agent is worth their pay, then interview others. In order to test this theory, hire a flat-fee broker, put the property in the mls, and offer a typical 3% commission. You will spend time wondering who is seeing the property, why there are no offers, and what other agents/buyers are thinking. If you have the right agent, then all of those questions are answered, and your property sells for the highest possible price that a buyer will pay.

Just got our 4th approval. Just gave them 6 more files to negotiate... This is great, and completely online.

There is no 'response time' from the lender, but there is an 'approval time' which is almost completely dependent on the negotiator - either the seller, agent, or paid representative of the seller. If the negotiator is good, they can have an approval within 2 weeks, if there is no negotiator, or it is done by an agent, then the process may take a lot longer. You can liken the process to submitting a loan application - some loan applications are submitted perfectly and close quickly, while others are pieced together and never close...

After speaking to multiple attorneys regarding the Wholesaling of Short Sales, they all agree that this type of investing, unless you disclose to the bank that you are purchasing the property at X value and selling the property at Y value within Z amount of time, is bank fraud.

If you disclose to the bank that you are purchasing the home for $100k, and selling it 24 hours after closing for $110k, and have the bank sign that disclosure, then you should be safe... My question is, why in the hell would the bank sell the property to you?!?

If you disclose that you are purchasing the property for $100k, renovating the property (showing construction bids) for $40k, and then selling the property 45 days later for $180k, then that is something that the bank may accept...

The attorneys that we work with in San Diego have all been involved in cases where "investors" have been contacted by the FBI. When Title changes, along with the sale value of the property within a very short time (and the bank has forgiven any debt, ie a Short Sale), then you may need to provide written authorization to the FBI on your disclosures directly to the lender (and if the bank accepted any federal funds - TARP Funds, then the FBI would be interested in why an investor is benefiting from tax payer funds), and the chances of a Federal Sentence are definitely not worth Wholesaling a Short Sale...

After 90 days, make any offer that you feel comfortable with. We've sold over 2,000 REOs, and 90 - 120 days is the magic time when lenders determine if they are going to liquidate the home via an auction or bulk sale. You're $25k offer might fly today...