All Forum Posts by: Bill Wilson

So I have been studying short sales as much as possible and I have an area where I want to focus in but I didn't think my first possible deal would be at this level. I guess I am a bit intimidated and I am looking for advise so I don't screw it up. Here's the deal:

I got a referral for a 40 ranch in ski country the owner owes $1mm and is in default. $1mm is ballpark of the value. There is a similar property listed for $1.15mm but has been on the market for over 6 months so its likely too high and they are fishing. (Comps are tough to find in the mountains.) Anyway, it leads me to believe that the referred home would be a short sale by the time all the transaction fees got paid. It is not listed and I would need to resell it in an A-B B-C transaction. I have a funder, a title co, and a negotiator lined up since I've been looking at getting into SS anyway. I need to line up a realtor or an RE attorney still.
I know short sales are complicated but I would like to be able to help these people out. I feel like there is room on this property to pay every one on the team, with a little left over because the market in the mountains isn't as hot as the Denver metro. So my feeling is the bank may be more flexible to avoid having a high dollar property sitting on the market for months. If I can negotiate the right price, I think it would move though.

What do you think, should I go for it, or run like hell? Any advice would be appreciated!

Thanks,
Bill

Grant, I am planning on being there and I look forward to connecting with more like minded investors!

Christopher, Welcome! I am new as well and I live in Littleton. Maybe we will bump into each other at the BP MeetUp on 4/22.

Best,
Bill

@Will, Thanks clearing that up. I guess I just assumed that the spread would be proportional to what it is in the 3/2 housing market since it's the same process.

@James, ya wouldn't it be nice if $500K spreads were just growing on trees like that. I'd be happy if after paying everyone out, I made $20K, LOL

I don't know much about the program in question but I stumbled across this post and I guess I am a little confused. It sounds like everyone is saying you can't short sell luxury homes. I am curious why it wouldn't work like any other A-B B-C short sale as long as you properly disclosed to all parties (seller, lender, and buyer) with appropriate addemdums, use transactional funds (they provide POF), and have the two separate stand alone closings? This way there is no holding period, right?

I would think the bank would be just as likely to agree to a $1MM property short sale as they would a $150K property short sale, maybe more so because it frees up a lot of cash in one shot. As an investor you should be able to turn a profit the same way you would with an average short sale, just on a larger scale.

Is my logic flawed somewhere? I am new to this so I could easily have missed something.

Thanks,
Bill

Welcome Andrew, with all the expertise on this site, I'm sure you find the best path. Best of luck to you.
Cheers,
Bill

Hi Jennifer, Sounds like Atlanta could be a hard nut to crack but my mentor is from there and he still has good things to say about it so there must still be deals happening. Welcome and best of luck.

Cheers,
Bill

Hello Kevin, I am new to investing as well. I ended up hiring a coach/mentor who is already established. I know there are various opinions about doing this, particularly since you can get most of the information from numerous, low to no cost sources. However, I know for me personally, I needed that person to keep me accountable and moving forward at a good pace to meet my goals. Plus I wanted to shorten my learning curve and have that one on one communication as I encounter issues. I wish you the best on launching your investment business and reaching your goals.
Cheers,
Bill

Hey Graham, we're in the same boat. I live in Littleton and I'm just starting out too. Maybe we find and work some deals in the future. Best of luck!

Bill

My name is Bill I am located in Littleton, CO and I just joined BP. I am just starting out in REI and I enlisted the help of a coach/mentor to help me do it right. He recommended this site to me and he was right, there really is a wealth of information and resources here! I can't wait to get to the point where I can contribute some value to the group but first things first; I have to get my business foundation established and get a deal or two done. Anyway, Greetings to everyone and happy investing!