All Forum Posts by: Ted Akers

@Anson Young

Hey Anson,

Thanks for putting this together. I may not be able to make that date, but if I can I plan on tackling the host and picking his brain.

@William M.

I looked at a larger but similar sounding deal in Atlanta about a year ago with numbers that looked much stronger on paper. I suggest that you really know your area. Some parts of Atlanta are very rough, and not likely to ever come back. If you are in an area with multiple vacant buildings, regardless of the rehab, you will likely have trouble renting after the rehab due to the area.

Hi Jared,

I agree with Daniel that a 2/1 is not a great fix-n-flip typically. Find a good realtor or consult with Patrick L to advise regarding your purchase price. I have not looked for several months, but last time I did there were many active listings in the $40k's in South St. Pete.

@Chris Winterhalter

Thanks for the suggestion. I have looked at a product by Winsol, but will definitely check out Serum SR. Your help and suggestion is appreciated.

With a short sale that you are planning to resale you have to use transactional funding, or your funds, or hard money because the title company will require you to close on the purchase with funds that are separate from the end-buyers funds. Transactional funding will only work though if you have an end-buyer for a higher price coming to closing at the same time of your purchase.

Hello @Daniel Cooper

I have an offer in on a fire damaged property. Can you help by recommending the specific chemicals/equipment you use for cleaning/removing the smoke smell? I may sub out the smoke damage cleanup but also may GC the majority of the demo.

Thanks,

Hello @Darren Nichols

@Darren Nichols

@Darren Nichols

Jana, congratulations on taking action and being in front of the homeowner. I suggest that you not be the one speaking to the bank. You are the investor making the offer on the property. Banks generally require that a realtor be involved. The realtor would be the contact with the bank, and also usually prepare the short sale package; which will includes a hardship letter, financials and tax returns, and a short sale form usually specific to that bank.

As @Anson Young mentioned you want help if you are new to the short sale business; as it is more involved and time consuming than other strategies, but can also be very rewarding. You want a realtor VERY familiar with short sales and who is an effective negotiator, or I think better yet a third party short sale negotiator. You do want to look at your resale numbers to determine your offer price and want to start with a fairly low offer, (knowing that it is more difficult to negotiate discounts with the banks in this low inventory environment) and get it under contract with the homeowner. States differ on short sale contract requirements but most do have a specific short sale contract or short sale addendum - your realtor listing agent should know what is required. Although help is suggested here it is not rocket science and can be done with patience and perseverance.

You are paying the taxes up until the day you sell the property. He gets a credit for that same amount because he did not own the property until the date of his purchase from you, and he has to then pay the full amount of the taxes in the future. So, in the future he uses the amount of credit he received from you and pays from his pocket the additional taxes accrued while he owned the property.

@Edwin E. As Joel mentioned a HML is distinctly different from a JV. If you pursue a HML strategy check your state statutes regarding licensing. States differ regarding HML licensing. I am not sure about Florida; but it has always been heavily regulated for traditional lenders, and I suspect probably requires a license for HML. In a JV you, or your entity, are part of the deal and can build in some protections in the JV Agreement such as time frames for you to take over the deal. While it cannot guaranty to eliminate legal proceedings I would prefer it, especially in Florida. As a HML with a Mortgage and Note as security your ultimate recourse is to foreclose, and Florida's foreclosure time line is very long because it is a judicial foreclosure state and the courts are backlogged.