All Forum Posts by: Paul Huntley

Than came to speak at a local REIA here in Charlotte, NC a couple of weeks ago. The biggest thing that Than stresses (which I've learned from him) is marketing with multiple methods to keep the phone ringing with deals to pursue.

I wanted to know the best way to structure an offer to the bank (before the BPO is ordered) for a Short Sale. Here is an example:

1st loan balance: $600,000 (Bank of Amer.)
2nd loan balance: $200,000 (Wells Fargo)
IRS lien: $10,000
Repair cost estimate: $10,000
Market Value of property (based on Comps): $530,000

My goal is to structure a back-to-back closing between the seller, me, and an end buyer.

In this example, my end buyer is willing to buy the property for $500,000.

What would be the best way to structure an offer that the bank will accept to ensure that I make a decent profit. My total anticipated closing costs would be 15% of the purchase price.

Any help would be appreciated

I wanted to ask all of the experienced Short Sale Investors (those that buy & sell to end buyers via a back-to-back closing) what are some typical profits you all are seeing in this market? I would like to focus on higher end luxury homes, has anyone been successful negotiating these type of deals at a discount, and what are typical profit margins? How difficult, and how long are short sale deals taking to close, are some markets quicker than others? I mainly wanted to get an overall feel on this strategy in today's market before I invest my time & resources in Short Sales. Any feedback would be greatly appreciated!

I need help with this deal.
ARV 219,000
(.65*219,000)-10,000[repairs]-21,900[holding]-10,000[wholesale fee] = $100,450 MAO

Now the seller currently owes $157,000 on the property. Would it be an insult for me to offer the seller $100,450 knowing that they owe more than my offer.



So should I always take what the seller owes on their property into consideration when making my offers? Does a deal ever make sense if my MAO is less than what the seller owes on it (without having to do a short sale)? Would this be a situation where I would ask for seller financing? Basically, is this a good wholesale deal, or is it a dud?

I need help with this deal.
ARV 219,000
(.65*219,000)-10,000[repairs]-21,900[holding]-10,000[wholesale fee] = $100,450 MAO

Now the seller currently owes $157,000 on the property. Would it be an insult for me to offer the seller $100,450 knowing that they owe more than my offer. Should I at least offer what the seller owes on it, or should I not even worry about what the seller owes and just make offers based upon my numbers? I wanted to get an opinion from an experienced wholesaler on how you generally make offers. Any help will be appreciated.

I'm really eager to learn this strategy for my business. I understand the concept of an Option To Purchase and I understand how flip (wholesale) an option on a residential property, I just wanted to know if the process is the same for flipping (wholesaling) an option contract on a commercial property. If someone has some success with this strategy please share your experience. I would also like to request an e-mailed copy of the option contract used for flipping commercial property and a brief rundown of the steps involved in this type of transaction. I would greatly appreciate anything that anyone is able to provide for me, Thanks!

Paul Huntley
PVH Enterprises
[REMOVED]