All Forum Posts by: Rob Huxman

Depends on who you use to do this. Some of them want a percentage of the deal some just want a fee. Some are willing to pay you a fee to let them take your deal. Personally we charged $1,000.00 per file to the lender on the hud. So we do 300-500 per month we make awesome money. Stay away from anyone that charges a up front fee and always ask to talk to pervious clients.

I negotiated Short Sales for people accross the nation. And have done well over 10,000 of them. I also worked as a Negotiations Manager for a major lender for a short amount of time. Generally you will see 13% off the BPO Value and the BPO is done my a neutral Broker generally. You will read on here over and over to go out and meet the BPO agent to influance there price. Personally I don't care about there price. I negotiate them differently I show the lender there profits if they take it thru the foreclosure process. That way they understand where I am coming from. So no I don't buy 300-500 a month. Yet I make money on every file.

My theroy is you never get what you deserve you get what you negotiate.

Well we did 300-500 Short Sales a month and close 97.44% at 67.95% of the BPO value the thing to really keep in mind is are you looking for 30% off the appraised value? Or are you looking for 30% below the BPO value. The other #1 question I would have for you is what is your exit plan?

So if you know what you are doing you will close 9 out 10. The other deals are going to be to close to the auction to get the deal done or there might only be one Lein Holder that does not want to budge... OR you might have a home owner that is just not motivated to get you all the paperwork on time. That is why I don't work with people that are not motivated under a 10. If you are a 9 I will send you out to someone else to get help.

If you writing offers simply write offers on everything that is in an area that you are interested. Me personally I will write offers on everything. 60-70% of value on properties that are in a area that I would buy and 50% in areas that I don't and 30% in areas I don't know. And 1% in Detroit! Just kidding about Detroit... They are taking a beating right now.

Also I never go out and look at a house until the numbers are in. Well to be honest I don't go then either.

This is sales and sales is numbers write as many as you can

It never will say something about a arm's length transaction that is more of a law then a guideline.

Originally posted by smitnlit:

1 - Meet with homeowners, get packet situated, submit to negotiator
2 - Wait to see if this is enough to get an auction canceled if there is one scheduled
3 - Get contractor over to do estimate/Pull low comps
4 - Wait for BPO to get scheduled and when that happens meet agent
5- Wait
6 - Wait
7 - Wait
8 - If offer is countered and we need more time, we wait to get file closed and then resubmit to get it opened. If we don't need more time, we counter immediately.
9 Wait
10 Wait
11 Wait
12 - If bank starts sending addendums, we relist the property.
13 Wait
14 Wait
15 Get approval hopefully and date needed that they want to close - Arrange our end buyer and closing A WEEK BEFORE that date.

Were you serious about that? I hope not! This way does work and this is how I did it to!! 12 years ago..

Lets revamp this a little.

1.EMAIL OR FAX Paper work to Home Owner
Tell the homeowner you will talk to them When the Paperwork is totally complete. Not to bug you before that
2 - After they send the paperwork to you submit it to the Lender and tell them Either they stop the sale NOW or your client will File BK and they will have to wait for your client to discharge in 8-12 months to start Foreclosure over.

3 - Call a contractor and ask if he knows anyone going into foreclosure. Chances are with how slow there business is they will. You don't need an estimate (SHOW ME ANYWHERE IN ANY LENDERS PACKET THEY ASK FOR ONE)

4 -Call the lender and DEMAND A BPO get scheduled TODAY when that happens Call the agent They are not my friends no need to meet them!

5- Wait on my assistant to get me some coffee
6 - Wait for some slacker to tell me this can't get done today
7 - Wait another minute and get back on the phone

8- This is where I started really laughing. Your telling me that your steps 5 6 and 7 were to wait? Now we are going to let the file close?

9 Wait
I agree with the one wait here if i have to wait and wait and wait someone is getting a personal visit.

12 - If bank starts sending addendums, Tell them to stick it!.

13 Here is a 4-6 day wait


15 Tell the negotiator to stick there deal! And buy out the note directly from the lender avoid seasoning.

Carry back 20% and make some real money.


Notice I never met the home owner! Never looked at the property. Never even went to the title company. Never met the BPO Agent. Honestly why should you?

If you Market to people 60-90 days late you will find 100 deals a month and turn down about the same so that is enough work right there.

If you present your business the correct way the home owner will sign and send back the doc's anyway if they don't you would of played hell getting them in the first place. Only do business with motivated people.

Never look at a house they all look the same. Its a numbers game.

Know your Agents and the BPO will come out no matter if your there or if your not. I am going to agree with them on the BPO amount anyway.

Title companies will come to you there is no need to go to them. I have a theroy if you don't work there don't go there. Unless your grabbing food. Think about it. I don't work at the title company the mortgage office the Attorney's office (He works at mine) The Bank. I don't work at any of those places so that means that if I don't work for them they work for me. So they can come to me.

Sorry just my thoughts on the subject

Get paid as a consultant. Educate C how to bid at Auction. 2nd won't redeem you make a Consutling fee.

Originally posted by Scott Hawley:

In California, there is a penal code section 594 provides that any person who maliciously damages or destroys the property of another is subject to fines and/or imprisonment.

This penal code is used especially on properties that were sold at auction.

Problem with this theroy is that it is still his property until the sale date. So this law does not apply.

You can get charged with distruction on personal property. Except when it belongs to you your kinda ok to break whatever you want.

I just kind of find humor in the fact that the home owners get mad at the lenders after they stop paying there mortgage. If I got a year free living without paying bills I would be pissed to when I lost my house! LOL Come on get a grip. Warn them about the recourse on the property. If you are a week away from auction chances are unless you know how to negotiate or who to call at the Bank its going to go to sell.. If they want to gut the house. Let them I would just let them know that I sure would like to buy all the kitchen cabinets back in a few months. Everything has a price tag if there dumb enough to gut the place. Be smart enough to keep in touch with them and buy it back. REO's are great deals to.

Sounds to me like you are dealing with a 100% prick!

See if the home owner will file a emergency BK! That will force the lender to re-start the foreclosure process. Or offer to buy out there note. Either way will work.

Is there a linen closet anywhere that you might be able to change where you can put a stackable?

I got to be honest here. It sounds to me like you are way to in love with your Rental house. This is a business you are not doing this to make friends at all.. I would never even let them know that I own the property. And if its in a Trust they will never do the Research to find out. And if it's not in a Trust it really should be. If they know that you own the property they will try to become buddy buddy with you. And I don't know how everyone else on here feels yet personally I have friends and they are a pain in the %%% as well. Rent is due by the 5th if not paid on the 6th they get a 3 day notice. After that eviction process is started. If a tenant has been with me awhile and lets me know of a problem I will work with them 100% (ONE TIME) I know this sounds hard. If you seem hard up front and really are not they don't know that. If you seem soft they will walk all over you. If you are to picky on who you let live in your property and it takes 2 months to rent the property that is 2 months down the drain right out of the shoot. At one time I had over 40 rentals.

The other option is hire a property manager and forget you own the place.

Or sell out and carry notes its easier and pays more.