Feeling down, confused and lousy, I need help...

I’ve been on this forum for months now. I’m new to REI, and I understand how the short sale process works, but I haven’t closed a deal yet and it’s really getting to me.

I’ve improved my marketing and now I’m getting consistent leads. But I can’t get past this feeling of being LOST and helpless as to what the next step is! :banghead

To keep it short, one example is -
I currently have a lead on a condo, where the owner owes about $365k with one mortgage. I sent in the authorization to the bank, and the bank is ONLY asking for 3 documents to speed things up:

  1. Sales contract w/offer
  2. Prequal letter
  3. HUD-1 statement

Now I’m confused, this is what my brain is thinking:

  1. I’m also a new RE agent, so should I list the house at a lower price and present offers to the bank as they come? I didn’t do this yet, because I wanna make more money than just my commission. Or what if I 1) list the house, 2) present an offer for $300k, 3)see if the bank accepts it, then 4)look to get offers for $320k and try to profit from the $20k margin. (This is how I’d ideally like to profit from these deals).

  2. Should I submit $200k cash offer under my LLC to the bank and negotiate it from there? The are asking for a prequal letter, but if I offer cash, will they ask for proof of funds?

  3. How do I prepare the HUD-1 when I’m making offers? I have an editable HUD-1 document, should I just punch in estimated numbers and submit it?

I feel like a bum! Please share your wisdom… I have a couple of leads and its driving me crazy that I keep getting stuck and can’t close any. I don’t have real world experience so my brain is cramped with options and I don’t have a clear plan!

You don’t provide enough information (like the value of the home) to make specific comments on this deal, but generally I would say:

-It doesn’t sound like you really know your strategy for acquiring properties. Focus on being an investor OR a realtor. Focus on either buying and flipping or trying to assign the contract. Just focus on 1 strategy and get a couple of deals under your belt before broadening out.

  • Be realistic on your prices. You choices of either offering 300K or 200K tells me you are not realistic on your offers. If you would even consider offering 300, then there is no way you will get action on a 200 offer. You can make a tremendous amount of money buying property for 80% of value, but you can spend hundreds of hours spinning your wheels and probably make no money if your goal is to pay 60%.

I think these are huge reasons most people don’t close any SS deals. They don’t focus and chase too many marginal deals and have unrealistic expectations for how cheap they can get a property.

BTW, of course they want proof of funds. And even if they don’t ask for it you should send it anyway. If you were selling a property, would you take a cash offer seriously if there was no POF?
If you can’t provide POF, you shouldn’t be considering buying a property.
If you are buying property, be professional and have this stuff ready and send complete packages.

I am not a Realtor, but in my state listing a property that you don’t own is very questionable, if not illegal.

Sounds a lil shaky to me. I feel that this would be a conflict of interest with you being a realtor and all. If you set the listing price then submit offers based on that price…that really seems like you’re crossing a thin line and could set yourself up for some legal headaches. Just my opinion. Like the post above me says…choose your angle the start your approach. Be a realtor or an investor, not both on the same deal.