All Forum Posts by: Steve Londeau

Here's a few successes we've had over the last few weeks/months....

We successfully negotiated the acquisition of 6 multi family rentals, using $0 of our money, putting $0 down, and only needing money, which is being borrowed from a private lender, for closing costs, and we'll actually walk out of closing with $7-10K in our pockets. (Its being left in the bank for incidentals). These will generate a couple thousand in cash flow, but there are only 10 years remaining on the notes, so in 10 years we'll own them all free & clear, and then the cash flow will be GREAT.

I should be getting my approval on a short sale anytime now. I got word from the Loss Mitigation rep @ the Mortgage Insurance company that I would get it today. My contact at the Foreclosing lender asked ME to try to contact them because he has been trying for 2 weeks to reach her. (Holidays and all I'm sure) I made 2 phone calls, and had verbal approval and was told she would send it over today. This is going to be my personal home. We're gonig to make $3800 when we buy, and I'm buying with approximately $45K in TRUE equity.

Working on a bulk REO deal that we offered on 40 houses. We will find out today, where we stand, but the success in this is that we succeeded in getting over 8M in proof of funds to put this deal together. We were hoping to just even raise 1.5M. We're just a couple of guys from Michigan who bust their asses day in and day out, and it truly has paid off.
:mrgreen:

Those are my successes since about Thanksgiving. 2009 is going to ROCK!!!

Really like that "book" idea as well! I'm going to implement that on all of our rentals too. Thanks for the tip!!

Ha! I'm NOT a stock investor. I gave it a shot, and well, let's just say I should stick to real estate!!

Bought a little ADR - "SAY" Just google it, and laugh at my misfortune. Basically, the Indian version of Enron! :oops:

I luckilly only bought a very small amount. (50 shares) so its not like I'll be jumping out of a window or swallowing a shotgun, but its pretty humbling to say the least! I'll stick to what I know, or at the very least, get real expert advice!!

What have you screwed up or has blown up in your face, stock wise?

Gotcha, and good point. I did get a bit off actual topic.

Anytime I DO give a seller money, it is for moving expenses, and sometimes we buy items to make it legal. Like I said in an earlier post, we have put downpayments down for people (where we actually send a check to the apartment company, etc) We prefer that way actually, if helping with moving expenses. Actually paying for the moving van, security deposit, things like that as opposed to handing a seller $XXX.

Sorry to get off topic there.

EDIT: Got off topic

EDIT: Got off topic

What does the bank even need to know about that part? Personally, I see no problem with helping the seller with moving expenses. I've done it, and outside of closing.

Hi Phil, thanks for the reply.

We used an agent friendly to what we are doing on the listing, however, the seller actually listed it. We didn't sign the listing agreement (yet). I think this was our mistake, and how we will proceed from here on out. WE will be the ones to list it, and the seller will only sign the listing to sign off as a title holder. All offers will be presented to us. We do have an option on this house and we have recorded the Notice of Option as well. We've rejected that offer, but I just wanted to get other investors who do short sales ideas on how they go about this. Listing or waiting until after the BPO is in to list, etc. etc.

Thanks again Phil for your reply.

DemosL - We are not looking to assign this to another investor. Thanks anyway for posting. I appreciate any and all responses. We are very good at doing short sales, however this is just the first time I've used agents to try to find end buyers. We had either found them on our own, or bought and rehabbed the houses to resell. No need to refer the deals to other investors. In fact, other investors refer deals to us for short sales.

Thanks all. Still want to hear from other short sale investors on just what your processes are from the time you have the contracts to the time you sell. (as far as marketing to sell and finding buyers, not the actual short sale process) Thanks!

Hope everyone had a good holiday!

Nobody wants to share? I'm disappointed. 60 views and not one post. :(

Hey all. I had a situation come up, which I will explain below, that made me think to bring this to the community to get your thoughts on it. I wonder what everyone's process is like when you do a short sale. I'm talking about once you have the contracts to begin the process, how do you market for an end buyer? Do you use a realtor or not, etc.

Specifically here are my questions on your process:

Here is the situation I had occur today. I have a property in a pretty desirable area in one of my farms under option contract. I have good rapport with the seller. I have sent the Authorization to Release to the bank, but nothing else yet.

The property has been listed for about 2 weeks at this time. My agent, who is a member of our team, received an offer on the property today, from another investor. In that offer, one of the contingencies was that a specific person affiliated with them handle the short sale negotiations. Basically, they are offering to the seller, precisely what my company is offering, however we generated the lead, built rapport, etc. This investor simply found a short sale listed on the MLS and submitted an offer, similar to how one might blanket offer on REOs.

The issue is this. The agent has a fiduciary responsibility to the seller to present the offer. He of course is in good rapport with us, and will reject it, as we are already doing what this investor intends to do anyway. However, here are my many questions.... when listing the property, and we have a vested title interest (our option contract and recorded Memorandum of Option) do we have a right to reject the offers? Can we list the property ourselves, and have the seller simply sign the listing agreement for their title interest? Who is the agent's fiduciary responsibility to, us, the owner in trouble, or both?

This is why I ask above, what your processes are, and if you do use Realtors, when specifically you list. I've done about 8 short sales, and I've never used agents until now. I either bought to rehab and sell, or found buyers for simultaneous closings via our own means.

Thanks in advance for your responses!