All Forum Posts by: Carlos Aguilar

Just got back from a Europe. Funny how difficult is it for anyone to accept the painful truth. But maybe this article in today's news explains better. Call me crazy or maybe kill the messenger but truth be told.

https://www.cnn.com/2019/05/15/economy/real-estate-commissions/index.html

 Well James,  your looking to the past and not the future. As most agents who continue to have blinders on with the arrogance that "Realtors" are indispensable is the very reason why your National association and your local associations have sold out the industry to Zillows. Does a home buyer or investor truely need a Realtor to complete a sale ?  Absolutely not. Since the begining ,the Realtor association did a good job in convincing the public  other wise. When the association gave up and sold out it's listing feed to Zillows you all lost the very industry it once controlled. Yet your all paying through the nose to an association in fees who didn't even put up a fight. You have no clue what Zillows has in store for the industry. They have been strategizing for years. They have been chipping away slowing but surely gaining control of the industry. He who controls the flow of data controls it all, that's their plan.  Zillows will soon one day automate the buying and selling process. They will do so by cutting the cost associated with realtor commissions . Perhaps ,down to 1 point or even just a half for each transaction. Saving consumers hundreds of millions. Zillows will transform the industry to the point you won't need to a Realtor any more.  Don't you realize that virtually every industry set for full automation and Real Estate is NO exception. But don't take my word for it, Just seat back and enjoy the show! 

Don't worry, it's agents like that that are going to be replaced by Zillows. Agents and their associations like NAR have lost control of the industry . I give them less than 5 years.

Hi Tayler, 

I am surprised that no one yet has replied or answered this question. I have been a short sale expert for most of my years in real estate in Las Vegas. I can tell you short sales can be a gold mine. They just require tenacity and hard work. Which is why so many agents fail at Short sales. The key point to quarterbacking your deal is knowing who the bank or banks involved. All banks are different in how they operate. Some are easier than others. Some banks are more willing to work a short sale , while some won't. The challenge is knowing if the lien holding bank is set up to do so. Some banks are arrogant and completely fail to recognize the financial benefit a short sale brings to a bank's bottom line.  In a short sale, Banks can save in attorney fees, court filing fee and time. They get a huge tax write off as a loss as well. 

I learned long ago never take no for answer when you're dealing with bank a short sale. Provided that your deal is in full swing with the bank. You need to learn how to escalate and figure out who are the top brass of the bank and how to escalate your file to them if you get a no on the sale. 

In regards to the numbers of your deal currently , is anyone guess what the bank is or is not willing to do. The "Owner" you say , is the person your contact with? If that's the case , of course the Bank is going to tell him to go pound sand!  That is self if a big mistake. The banks only mission with dealing with the owner is they want their money. They will act like the mafia towards the homeowner, you want to short sale your home?  F***k you, pay me. That's what the banks frame of mind is.  They want their money. 

The owner needs a realtor that is an expert on short sales or some kind of representation.  An agent that basically follows what I outline here. They have to have a checklist to determine if there is a department at the banks that is setup to work on short sales.  The owner or realtor can ask the bank, do you process short sales? If they say no, be sure to escalate to speak to a manger. From experience some good agents will already know if this particular banks does or does not do short sales.  Once that is determined then you know if its a dead deal or if there is a chance to get a good deal on it.  Good Luck !

I have been in the business for over 10 years. I have worked with all levels of investors.  You can spend thousands of dollars on Real Estate investment BS programs that comes out of the woodworks. Those same people are constantly  second guessing themselves to the point of never doing anything.  Sure it's important do some due diligence but dont get hung up on it. At the end of the day the first thing you need to decide is to "just do it" ! 

Paula,

*Disclosure: I am not a cpa or attorney Please consult with a local professional. These are strictly expression of my opinion and not advise.*

its important for any Real Estate investor to understand to why you should have an Limited Liability Corporation. Also , based on your question, it shouldn't matter if you do have an LLC or not. If you run your RE investments like a company for the sake of write offs, it shouldn't matter.

However to maximize your write offs look in to an "S-corp". You can create a business account. but beware not to co mingling of monies.  Meaning, dont mix personal with business funds.  You place all your real estate gross earning in to your company that you own. Which then you then can pay your self a salary after all your deductions. The lesser amount could be tax rather the gross earnings. 

Going back to LLC, If you own more than 1 or 2 homes in which you have renters , its vital to have an LLC under them. If you have a renter that slips and falls (as an example) they cant sue you directly, only the LLC(entity). Its a layer of protection that is vital for any real estate investor.

Good luck ! 

James,

Looks like your ready set to go. Yet,you just open a can of worms after the fact by asking for advice now. Forget what any one says now. Other wise you will second guess your self. Just go for it, if works great , if not then learn and tweak.  Just follow the Nike motto !!

Good Luck ! 

Mr.Evans,

Great questions. Based on my experience in years in Real Estate Investing, Mobile home market is kind of like an acquired taste. No one really like that market due to the low returns and the variable down side. The initial investment is more affordable, however the returns are all relative as well. You really cant build strong equity on them. The only favorable situation for a mobile home is one built on a permanent foundation. Which is a mobile home secured on a concrete footing with the wheel base removed. I recall Berkshire Hathaway purchased  Clayton homes and loans  back in 2003. Which they have cornered  that industry in construction and lending. If you take their cue , I guess there is money to be made there. If you have the acquired taste for it.   

I have been in the real estate business for past 10 years in Las Vegas. Working with my wife as a team during that time. We have grown our client base to include seasoned Investors and home buyers. We are currently looking to expand our business to Florida and open a branch office in the Miami and Ft.Lauderdale area in 2016. 

Howie,

One way is to hire an appraiser to determine market value of the home. However, a full blown appraisal can be expensive on every single property, $200-500 (depending on the size of the home). The best alternative to that is doing a Broker Price Option (BPO). Which is an depth market comparison typically done by a licensed Realtor. The cost can range from $40-60. Some times if you develop a relationship with an agent they can do it for no cost. If your just doing  one or two. If you need several than if important to compensate them for the work. Working with an experienced agent that knows BPO guidelines will yield the best results.  You can google what those established guidelines are. 

Many Banks prefer ordering a BPO than an appraisal to get an idea of market value. They usually order them when they are dealing with a short sale or foreclosure sale. Its cheaper and faster. When a bank is lending out the money then they will prefer to do an appraisal.   

Once you have that estimated value, compare that to the actual up to the minute payoff from the bank. The homeowner will have to call their lender and request for a payoff. 

If the payoff is greater than the home value , you know you're going to be upside down. If the home value is greater than the pay off , you might have some equity. Just subtract one into another  you then have your estimated equity. When you work with very close estimated values, at the end you work with confidence in knowing where you stand.  

Good luck!